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Full text of "The Economic seminary"

XI E> HARY 

of the: 

UNIVERSITY 

Of ILLINOIS 

„ c 

J62u Zee 
1903/04-' 
1910/1 1 




No. 3 



THE 

JOHNS HOPKINS 



UNITEKSITY CIKCULAE 



THE 

ECONOMIC SEMINARY 
1903-04 



Baltimore, Maryland 

Published by the University 

Issued Monthly from October to June 

May, 1904 



[New Series, 1904, No. 3.] 
* [Whole Number 168.] 



Entered, October 21, 1903, at Baltimore, Md., as second class matter, under 
Act of Congress of July 16, 1894. 



JOHNS HOPKINS UNIVERSITY CIRCULAR, No. 168. 



MAY, 1904. 



CONTENTS. 

PAGE. 

The Economic Seminary, 1903-04: 

Shop Rules of the International Typographical Union. By G. E. Barnett, 3 
Functions of the Knights of Lahor, By Wm. Kirk, ----- 8 
The Factory Employment of Women and Children in Baltimore. By Chas. 

F. Ranft, ---- _._-12 

The Financial System of the Cigar Makers' International Union. By A. M. 

Sakolski, --------------15 

Employers' Associations. By F. W. Hilbert, ------- 18 

Apprenticeship in the Building Trades. By Jas. M. Motley, 23 

Popular Government in the Cigar Makers. By T. W. Glockee, 27 

Shop Rules in the Baltimore Building Trades. By S. Blum, 31 
Origin of the Beneficiary Features of the Cigar Makers' International Union 

of America. By J. B. Kennedy, ---____- 34 

Trade Unionism and Industrial Efficiency. By Henry White, 38 

The Theory of the Standard Rate. By W. H. Buckler, - 41 

Ricardo's Theory of Value. By J. H. Hollander, ----- 45 
The Evolution of Railway Rates. By L. G. McPhekson, - 48 

Legislative Regulation of the Oyster Industry in Maryland. By M. O. 

Shriver, Jr., -------------52 



O (* «< M. / -CO 

(7* 1 : 

THE 

JOHNS HOPKINS 
UNIVERSITY CIRCULAR. 

New Series, 1904. No. 3. MAY, 1904 Whole Number, 168. 

THE ECONOMIC SEMINARY, 1903-1904. 

Edited by Associate Professor J. H. Hollander. 



During the current academic year, the Economic Seminary 
has continued its investigation into the history, activities and 
influence of labor organizations in the United States. Its member- 
ship has been more narrowly limited to advanced students 
preparing for a scientific career in economic study, and its primary 
design has been the development of sound method in economic 
research. The regular fortnightly evening sessions have been 
supplemented by briefer morning sessions in alternate weeks. 
The material resources necessary for the inquiry have been supplied 
by the continued generosity of the citizen of Baltimore, whose 
original gift made its inception possible. 

"A Trial Bibliography of American Trade Union Publica- 
tions, ' ' in the preparation of which the Seminary has been engaged 
since October, 1902, has been completed and issued as a brochure 
of 110 pages under the editorship of Dr. Barnett, in the Johns 
Hopkins Studies in Historical and Political Science (January- 
February, 1904). Appreciable progress has also been made by 
individual members of the Seminary in the study of specific 
aspects of the several questions assigned for investigation. Daring 
the summer, field work was carried on in various carefully 
selected localities, and the data thus collected have since been 
supplemented and corrected by documentary study and personal 
interview. It is hoped that during the next academic year, a 
cooperative volume of studies in American trade unionism can be 



Johns Hopkins University Circular 



[206 



issued by the Seminary, embodying the preliminary results of the 
various investigation now in progress and ultimately designed for 
monographic publication. 

The record of the proceedings of the Seminary, and abstracts 
of certain of the papers there presented, are appended : 

October 14. Keports of the summer's field work, by Associate Prof. 

Hollander, Dr. Barnett, Messrs. Hilbert, Kirk, 

Motley, Ranft and Sakolski. 
October 20. " Collections of American Trade Union Publications," 

by Dr. George E. Barnett. 
October 28. " Shop Rules of the International Typographical Union," 

by Dr. George E. Barnett. 
November 3. " Opportunities for Social Work in Baltimore," by Dr. 

Walter S. Ufford, General Secretary of the Charity 

Organization Society of Baltimore. 
November 11. " The Development of the Knights of Labor Movement," 

by William Kirk. 
November 17. "The Condition of Women and Children in the Fac- 
tories of Baltimore," by Charles F. Ranft. 
November 23. "The Finances of Representative Trade Unions," by 

A. M. Sakolski. 
December 1. Plan of a monographic study of "The Printing Trade," 

by Dr. George E. Barnett. 
December 8. "Employers' Associations in the United States," by 

F. W. Hilbert. 
December 15. Reports on local labor conditions, by Messrs. Blum, 

Hilbert and Motley. 
January 6. (a) "The Apprentice in the Building Trades," by J. M. 

Motley. 
(6) "The Future of the Trusts," by L. G. McPherson. 
January 12. (a) Preface to "A Trial Bibliography of American Trade 

Union Publications," by Dr. George E. Barnett. 
( b ) The New Orleans meeting of the Economic Association, 

by Associate Professor Hollander. 
January 20. "The Structure of the International Cigar Makers' 

Union," by T. W. Glocker. 
January 26. " Evolution of Railroad Rates," by L. G. McPherson. 
February 3. "Shop Rules in the Building Trades," by S. Blum. 
February 17. ( a ) " Beneficiary Features of the Cigar Makers' Interna- 
tional Union," by J. B. Kennedy. 
(6) " High License in Baltimore," by H. S. Hanna. 
February 23. A review of recent French and German works on 

Sociology, by W. H. Buckler. 



207] 

March 

March 
March 

March 
March 
April 



16. 
22. 

28. 

12. 



April 
April 


13. 
19. 


April 


27. 


May 


3. 


May 


11. 


May 


17. 


May 


25. 



The Economic Seminary, 1903-1904. 3 

"The Beneficiary Departments of Transportation and 
Mining Corporations," by L. G. McPherson. 

"Oyster Legislation in Maryland," by M. O. Shriver, Jr. 

"The Theory of a Standard Rate of Wages," by William 
H. Buckler. 

"Labor Unionism and Industrial Efficiency," by Mr. 
Henry White, General Secretary of the United 
Garment Workers of America. 

' ' A Comparison of the Functions of the Knights of Labor 
and the American Federation of Labor," by William 
Kirk. 
Plan of a monographic study of ' ' The Structure of Ameri- 
can Trade Unions," by T. W. Glocker. 

1 'The Cost of Strikes to Trade Unions, " by A. M. Sakolski. 
Plan of a monographic study of ' ' The Shop Regulations of 
American Trade Unions," by S. Blum. 

"Trade Agreements in the Iron Molders' Union," by F. 

W. HlLBERT. 

Plan of a monographic study of ' ' The Beneficiary Fea- 
tures of American Trade Unions," by J. B. Kennedy. 

"Trade Union Membership in the Building Trades," by 
J. M. Motley. 

Plan of a monographic study of ' ' Trade Unionism and the 
Standard Wage," by W. H. Buckler. 

"Collective Bargaining in the Printing Trade," by Dr. 
George E. Barnett. 



SHOP RULES OF THE INTERNATIONAL 
TYPOGRAPHICAL UNION. 

By Dr. George E. Barnett. 

Aside from the regulations governing apprenticeship, the chief 
shop rules enforced in "union offices" by the International 
Typographical Union fall into four classes: (a) rules designed to 
secure the distribution of work ; (b) rules affecting tenure of 
position ; (c) rules intended to prevent a decrease in the amount 
of work to be done ; (d) the requirement that the foreman shall be 
a member of the union. 

(a) Rules intended to promote the distribution of work. 



4 Johns Hopkins University Circular [208 

Among trade unionists, the feeling that work ought to be shared 
ail around is a common one. This feeling has its basis partly in 
humanitarian instincts and partly in the recognition of the fact 
that the unionist without work is a menace to the maintenance of 
the union rate of wages. It is an old saying among the printers 
that ' ' The man on the streets maintains the scale. ' ' Many labor 
organizations have met this problem by the payment of out-of- 
work benefits. The national organization of the printers has 
never adopted this plan but has relied on the actions of individual 
members to obtain the same result through a direct sharing of 
work, a far more primitive device. The laws of the union 
intended to secure this end are known in the trade as the ' ' sub- 
stitute law" and the "six day law." The former enacted in 
1883, is intended to prohibit such action on the part of foremen 
as would make it impossible for workmen holding ' ' situations ' ' 
to share their work with less fortunate unionists. The law makes 
it illegal for a foreman to designate any particular men who shall 
have an exclusive right to act as substitutes for ' ' regulars. ' ' 
It is thus made possible for ' ' regulars ' ' to distribute work more 
widely than would otherwise be the case. A feeling that a fellow 
unionist out of work has a moral right to assistance in this form 
has long been a part of the working creed of the union printer. 
The "substitute law" caused no serious inconvenience to the 
foreman as long as the system of hand composition was universal. 
Work was commonly paid for by the piece system and the amount 
of capital used by the journeyman in his work was so small that a 
considerable difference in the quantity of the output between a 
* ' regular ' ' and his substitute made little difference to the fore- 
man. His remedy was to put an extra man at work. The 
coming of the machine has resulted in making the substitute 
legislation a cause of considerable friction. Since the employee 
now uses a costly machine, the employer is desirous of economizing 
as much as possible the number of machines, and the inferiority 
of the substitute may cause serious difficulty in getting the work 
done on time. The result has been that in the larger cities, the 
local unions have been forced to wink at evasions of the na- 
tional law. 



209] The Economic Seminary, 1903-1904. 5 

The "six da/ law" enacted in 1890 forbids a printer's work- 
ing more than six days a week, i. e. , fifty-four hours, if' a substitute 
can be secured. The primary purpose of the law is not to prevent 
the overworking of the men by securing a day of rest but to give 
within certain limits legal force to the custom of sharing work. 
In 1899, a proposition to limit the working week to five days 
was defeated at the referendum, but many locals enacted "five 
day laws ' ' during the trying period following the introduction of 
the linotype. While the ' ' substitute law ' ' and the ' ' six day 
law ' ' apply nominally to all ■ ' union offices, ' ' such rules from 
their nature are important only in newspaper offices. 

(6) Rules affecting tenure of position. All trade unionists in 
order to protect the integrity of their organizations are forced to 
insist rigidly that members of the unions shall not be discharged 
by foremen on account of their connection with the union. The 
International Typographical Union, going much farther, requires 
in broad terms that a member working in a union shop shall only 
be discharged for incompetency, neglect of duty, violation of 
conspicuously posted office rules, or finally, to decrease the force. 
Where a reduction in the force is made, persons last employed 
must be the first to be discharged. Additional provisions prevent 
sham decreases of the force by requiring that ' ' in the event of an 
increase in the force within sixty days after a decrease, the 
persons displaced shall be reinstated in the order in which they 
were discharged before other help may be employed." The evi- 
dent purpose of this legislation is to make tenure of position 
independent of the mere will of the foreman or employer. The 
"priority law," as the legislation described above is known 
among the members of the Union, has been in force with a 
short intermission since 1892. In the last resort, questions of 
competency, neglect of duty, and violation of rules may be deter- 
mined by the union. The views of men and employers on these 
questions are likely to differ ; but up to the present time there 
seems reason to believe that the printers generally have refrained 
from an arbitrary construction of the law, although in some cases 
a dangerous tendency to infringe upon undoubted rights of 
employers has revealed itself. The attempt to set up a form of 



6 Johns Hopkins University Circular [210 

civil service tenure in the printing trade is an experiment in the 
modification of the ordinary wage -contract which requires for its 
successful carrying out, a high degree of forbearance and wisdom 
on the part of subordinate unions and of national officials. The 
danger is always present that the "priority law" may be inter- 
preted in such a way as to become a shield for incompetents. 

(c) Rules intended to prevent a decrease in the amount of 
work. Two important labor-saving devices introduced in the 
printing trade during recent years have been met by the Union 
with rules intended to limit their use. The increasing substitution 
of ' ' plate matter ' ' for composition attracted the attention of the 
Union as early as 1884. The loose structure of the international 
organization at that time prevented any united action, and the 
whole subject was by an international law "relegated to sub- 
ordinate unions with power to act." The local unions, unable 
to prevent entirely the use of ' ' plates ' ' were usually successful 
in securing an agreement with newspaper publishers that the 
amount of composition required should not thereby be reduced. 
Curiously enough the extensive practice of using ' ' plates ' ' for 
advertising matter has not been the occasion of restrictive leg- 
islation on the part of the subordinate unions. The introduction 
of the linotype by cheapening composition has materially lessened 
or entirely overcome the superior economy of "plates," and 
proportionally decreased the importance of the ' ' plate question. ' ' 

For many years, the international organization has urged the 
local unions ' ' to put forth every effort to abolish the practice of 
loaning and borrowing matter between morning and evening 
papers except where owned by the same individual firm or 
company and published in the same establishment. ' ' With the 
introduction of stereotyping, the loaning of matter in the form of 
' ' matrices ' ' between two morning or two evening papers became 
practicable. This is also forbidden by the laws of nearly all the 
larger unions. The competition between newspapers would 
probably prevent in any case any large amount of such borrowing, 
but it frequently happens from lack of time for composition, the 
advertising * ' matrices ' ' are exchanged. The local unions usually 
permit such exchanges only on condition that the matter be 



211] The Economic Seminary, 1903-1904. 7 

1 ' reproduced. " As a result of this rule, ' ( admen ' ' are frequently 
engaged in setting up matter which has already been published. 

(d) The requirement that the foreman shall be a member of 
the union. The foreman in any industrial establishment occupies 
an intermediate position between the employer and the journey- 
men. The Typographical Union by a series of rules has required 
that foreman shall have sole charge of the employment and dis- 
charge of journeymen. Theoretically an employer once having 
selected his foreman has no further concern with matters in his 
"office." He may discharge the foreman at his pleasure but he 
cannot interfere with him while he is a foreman. Evidently the 
enforcement of all shop rules depends in the first instance upon 
the foreman. Recognizing this fact the Union by an international 
law has required that foremen shall be members of the Union. 
The claim is made that under union foremen there is far less 
friction between journeymen and employer. On the other side, 
the employers, especially the book and job printers, have stren- 
uously protested against the rule, maintaining that the foreman is 
in a peculiar sense the representative of the employer and that he 
should not be liable to union discipline. Up to the present time 
the union has rigidly maintained its rule. The "foreman 
question ' ' is the real center of the whole controversy over shop 
rules. 

Shop rules are as much elements in the wage contract as the 
rate of wages or the length of the working day. In the earliest 
stage of collective bargaining in the printing trade, the local union 
formulated a scale and presented it to employers for approval. 
The preparation of scales in the more highly organized localities 
has now become the work of joint committees. Shop rules, to be 
effective, must be enforced through the whole jurisdiction of the 
Union, and the formulation of these rules, if they follow the same 
line of evolution which the determination of other parts of the 
wage contract has taken, will become the work of boards 
representing the International Typographical Union and the 
national organizations of the employers. There is evidence that 
we are now passing through the initial stage in that evolution. 
The Typographical Union cannot consistently with its past history 



8 Johns Hopkins University Circular [212 

long maintain the position that ' ' the laws of the Union are not 
subject to arbitration." 



FUNCTIONS OF THE KNIGHTS OF LABOR 
By William Kirk. 

A study of the early writings of the men who moulded the 
Knights of Labor as an institution, reveals three prominent aims : 
the dissemination of knowledge among its members, the estab- 
lishment of cooperative enterprises, and the intelligent use of the 
ballot as an agency in political and social reform. 

Trade unionism was by its very nature limited in usefulness. 
Where men of a single craft held aloof from members of other 
trades, the sympathy and concord so vital to any decisive advance 
in the labor movement were lacking. On the other hand, an 
organization representing a highly centralized form of labor 
federation, and disregarding the trade boundaries formerly 
observed, was well prepared theoretically to unite the scattered 
fragments and attain definite and far-reaching ends. 

The mixed assembly, the unit in the Knights of Labor struc- 
ture, became something more than a trade union, exercising an 
educational influence by the intimate association of men of various 
callings and widely different walks of life. Furthermore, this 
unit admirably met the requirements for successful cooperation by 
controlling demand as well as production. If a trade local 
embarked on a cooperative enterprise, the chances of success were 
minimized by virtue of the limited number directly concerned ; 
but when a mixed local, in a community organized into Knights 
of Labor Assemblies, ventured on independent production, the 
combined patronage of the artisan class enlisted in its behalf 
assured a market. As the local became the factory, the district or 
union of neighboring locals developed into the exchange. 

During the interval in which these ideas were maturing, the 
distinctive structure of the locals was utilized to meet immediate 
conditions. The same power that could control the distribution 



213] The Economic Seminary, 1903-1904. 9 

of cooperative products was equally efficient in the field of general 
consumption, bringing into active use a formidable weapon, 
the boycott. Strikes were discouraged by the officials of the 
Knights, as failing to penetrate the heart of the trouble and 
inducing at best temporary and superficial results. The boycott, 
though designed as a temporary expedient, reached more deeply 
and without involving the reciprocal suffering attendant upon all 
strikes. In the exercise of this function, the federated form of 
organization enjoyed a peculiar advantage. A trade union in 
any locality may cease purchasing an article without appreciably 
reducing the sale, since the number of consumers observing the 
boycott is necessarily small ; but an assembly of the Knights of 
Labor, supported by a large proportion of laboring consumers in 
the vicinity, wields an influence proportioned to the purchasing 
power of the members interested. 

The third principle underlying the movement and consciously 
shaping the machinery of government was the concerted use of 
the ballot as a factor in social progress. Here again, the advan- 
tages of an organization coextensive with the domain of labor were 
conspicuous. Trade unionists in their respective fields were too 
weak numerically to change the result of an election, while the 
members of the Knights of Labor pledged to mutual helpfulness 
controlled the issues at stake. 

From this mechanism so well adapted theoretically for the 
exercise of certain functions, permanent and wholesome results 
seemed probable. At the second session of the General Assembly, 
the following resolution was adopted, ' ' Each Local Assembly 
shall devote not less than ten minutes or more than one hour of 
each session thereof, to the discussion of subjects bearing upon the 
labor question. ' ' Here was a practical effort to suggest fruitful 
lines of thought, and bring the man into more intelligent relation- 
ship with the problems of his environment. 

In May 1880, appeared the first number of the "Journal of 
United Labor ' ' primarily designed as a medium of communica- 
tion between the branches of the Order, and as an unprejudiced 
herald of advanced views. Unable to maintain the independence of 
a non-partisan publication, it gradually grew more biased as the 



10 Johns Hopkins University Circular [214 

struggle with external forces became more bitter, until the original 
purpose of an educational organ almost wholly disappeared. 

Other agencies employed in the diffusion of knowledge were 
lecturers, who visited the assemblies and addressed them upon 
contemporary topics, and statisticians, who gathered all possible 
information relative to the condition of labor throughout the 
Order. The latter department proved valuable as an index for 
guiding the activities of the executive authority. 

Education, though an end in itself, was also a means whereby 
a system could be inaugurated in which men would become their 
own employers. Two schools of thought early differentiated them- 
selves. The one advocated an aggressive policy of strikes in order 
to : £enforce demands ; the other, representing the conservative 
element, emphasized the futility of strikes as a factor in attaining 
permanent results. It was due to the influence of the peace 
adherents that cooperation found persistent encouragement. In 
June, 1882, a cooperative fund, with a compulsory feature 
attached, was established. From this fund investments were 
made, and enterprises started as the financial condition of the 
Order justified. The compulsory nature of the law proved a 
serious defect and led to an amendment making contributions 
voluntary. 

With modified machinery, the officials sought to realize in 
some degree at least the industrial state conceived as an ultimate 
aim of the movement. Experiments in cooperative stores, 
factories, and institutions, were reported in 1882 from seventeen 
out of one hundred localities; and in 1887 the General Cooperative 
Board announced eight halls and buildings, one newspaper, and 
fifty-four workshops, factories, etc., engaged in productive co- 
operation. 

In spite of careful preparation, the general result of such ventures 
was disappointing, leading to a desire to abolish the Cooperative 
Board, and to decided reluctance to embark on independent 
undertakings. Among the chief causes of failure was the lack 
of business experience in the management of the enterprises. 
Often such an enterprise originated in a strike or lockout, where 
men entered upon the project with funds drawn from the central 



215] The Economic Seminary, 1903-1904. 11 

treasuiy. Just as soon as the friction ceased, and the choice arose 
between a certain position and a risky venture, the enthusiasm, 
so apparent at first, suddenly abated, invariably bringing a total 
loss upon the General Assembly. The small confidence imposed 
in the managers, engendering jealousies and constant suspicion, 
and the hostility encountered on all sides from capitalistic 
combinations, may be cited as important influences. 

With the advent of the Knights of Labor, the belief that labor 
must carry its demands beyond the workshop, and crystallize 
into statute law definite reforms received greater attention than 
ever before. From 1880 to 1885, the intense interest manifested 
in political affairs occasioned a note of warning from headquarters 
' ' so surely as we run into politics shall we be disrupted. ' ' The 
admonition remained unheeded, and in the national campaign of 
1888 the Order was on the verge of precipitating itself into the 
contest. In many localities the secret but powerful constituency 
of the Knights of Labor had elected labor candidates. So 
successfully had these municipal elections resulted that the mem- 
bers became ambitious for greater victories. A party in which 
all legitimate reformers could find a place appeared a fitting 
substitute for the two corrupt, boss-ridden political organizations. 
Hence in 1890 a further step was taken, and active agitation by 
the leaders stimulated a wave of enthusiasm which finally resulted 
in the formation of the National People's Party, with "land, 
transportation, and finance ' ' as the campaign cry. 

Pledged in this manner to political action, the federation 
dissipated much of its energies in vain effort to make industrial 
forces politically supreme, and thereby caused the internal dissen- 
sions which have so often attended the political affiliation of labor 
organizations. 



12 Johns Hopkins University Circular [216 



THE FACTOEY EMPLOYMENT OF WOMEN AND 
CHILDREN IN BALTIMORE. 

By Charles F. Ranft. 

The characteristics, environment and general conditions of fac- 
tory life of women and children in Baltimore City have never 
been made the subjects of a detailed inquiry. It was with the 
desire of correctly understanding this field of industrial life, that 
a local investigation was undertaken by the writer under the 
auspices of the Consumers' League of Maryland and with the co- 
operation of the Bureau of Statistics and Information of 
Maryland. 

The investigation occupied a period of nearly three months, 
covering in that time, one hundred and four factories and dwell- 
ings in which were manufactured the following articles: ladies 
waists, children's and misses' wear, corsets, ladies skirts, cigars, 
cigarettes and smoking tobacco, shirts and drawers, shirts and 
overalls, shoes, umbrellas and ladies wrappers. 

The plan of inquiry comprised (1) a tabulation of the various 
statistical data indicated on the card specially prepared for fac- 
tory inspection by the Maryland Bureau of Statistics. The 
points covered by the schedule used were: relation of the general 
factory system to Maryland factory legislation, condition of female 
employees and character of their work, length of the working 
day, wage earnings, sanitary regulations and conveniences, 
together with the environment and general tone of this phase of 
factory life; (2) direct observation and examination of conditions, 
and collection of data by personal interview with employers and 
employee. Each room in each factory and dwelling was examined 
separately and described in a separate record, noting the char- 
acteristics of that room and the working force. 

In addition to the investigation proper, a supplementary inves- 
tigation was undertaken of the coat pad industry, as an 
example of average conditions of child employment. The regular 
inspection detail was recorded, the employer was questioned, and 
in particular, each child was examined as to age, residence, 



217] The Economic Seminary, 1903-1904. 13 

occupation of father and mother, school and grade in school, 
reading and writing qualifications, wage earnings, length of 
time at work and the general attitude of the child toward the 
work and environment. About seventy-five children were inter- 
rogated and the homes of fifteen children were visited in order to 
obtain if possible a correct realization of the condition of both 
home and factory life. 

In addition to these inquiries a certain amount of time was 
devoted to visiting representative types of the sweat shop industry, 
for the purpose of securing a proper basis of judgment in contrast- 
ing good and bad conditions of employment. 

A synopsis of some of the more important results of the 
investigation are as follows : In the one hundred and four 
establishments examined 10,854 people are employed, of whom 
9012 are females and 1842 are males. Three-fourths of the 
proprietors are citizens of the United States. 

Piece-work is the general system of payment. Of three 
hundred and nine workrooms, twelve have insufficient air space, 
only three disclose unclean conditions, twenty-six have fair, 
and nine have absolutely bad ventilation. Drainage is good in 
all factories. One half of the factories provide washrooms for 
females. 

Twelve factories provide lunch rooms; sixteen factories have 
no separate toilet arrangements for women, and in a number of 
cases there appear to be too few toilet conveniences for the number 
of people employed. Twelve factories impose fines, which are 
for the most part disciplinary and seldom collected. Only one 
factory allows a summer vacation of one week with pay. More 
than one-half have overtime work and only seven pay such work 
at a higher rate. Forty-nine factories have goods made elsewhere 
than on the premises. 

Ten work-rooms have insufficient means of egress in case of 
fire. Seventy males and five hundred and seventy-five females 
under sixteen years of age are employed. The average working 
day is about nine and one-half hours; one factory requires ten 
and one-half hours per day. A half hour is the average lunch 
time allowed. 



14 Johns Hopkins University Circular [218 

Seventy-one factories allow a half-holiday on Saturday in 
summer ; forty-one allow a Saturday half-holiday in winter, seven 
have no Saturday working day whatever, and eight a Saturday 
working day only in winter. The general sanitary conditions 
throughout all the factories are good. 

The general impression derived from the investigation was that 
Baltimore is an important centre for manufacturing industries 
requiring the labor of women and children. In the shirt and 
overall industries its importance is already recognized, and in the 
other industries investigated, the growth during the last few years 
has been important. With this growth has come an increasing 
demand for female labor, and the supply at present is inadequate 
to the demand. This fact combined with the ease with which 
female labor can move in these related industries places the fe- 
male employee in an independent attitude. These conditions are 
conceded by the great majority of manufacturers, and the effect 
upon the condition of the employee is beneficial. In various 
ways the different employers offer inducements to attract employees 
to their establishment, and in the case of growing establishments 
managerial ability and constant care are needed to procure and 
keep an adequate labor supply. The demand and inducements 
offered vary in direct ratio to the skill and intelligence of the 
employee, yet for all classes of manufacture the demand seems 
much greater than the supply. In many factories the employers 
regard their working force in an almost paternal manner, 
conscious of present conditions in the labor market and endeavor- 
ing to gain superior fidelity. 

It should be understood that the body of female factory 
employees falls into grades or classes, according to the amount of 
skill and energy required and the susceptibility of the work to 
high efficiency and technique. The higher class of employees 
refuse to work in a bad environment and are able to secure good 
surroundings; while the middle and lower classes are satisfied 
with the indifferent conditions offered them. In those grades of 
work therefore where competition acts more keenly, small 
struggling enterprises offer less favorable conditions. To these 
unfavorable conditions is drawn that class of female labor whose 



219] The Economic Seminary, 1903-1904. 15 

standard of life is only average, and in many cases even low. 
Development and progress in factory life is a matter of no great 
concern to this class, and the factory is regarded only as the 
place to earn an amount of money necessary to satisfy certain 
desires. 



THE FINANCIAL SYSTEM OF THE CIGAR MAKERS' 
INTERNATIONAL UNION. 

By A. M. Sakolski. 

The reorganization of the Cigar Makers' International Union, 
which took place in 1879, laid the basis of its present well 
developed and efficient financial system. Prior to that time, the 
organization, although in existence fifteen years, had made very 
little progress toward the improvement of its finances, and in this 
respect was no better off than other national trade unions. The 
meagre revenue that it received from the low per capita tax levied 
upon the local unions, was barely sufficient to meet the limited 
expenditures of the general office, whose principal item of expense 
at this time was printing and postage. The entire receipts rarely, 
if ever, exceeded one hundred dollars per month, and the inter- 
national president often found himself without funds to perform 
the duties required of him. The financial aid, granted to members 
on a strike, by the international union could only be raised by 
special assessments levied upon the locals for this purpose. The 
returns from these assessments, however, were usually so uncertain 
in amount and so difficult of collection, that the local unions 
conducting strikes were often compelled to rely upon their own 
financial strength for support. These conditions naturally 
prevented the Cigar Makers' International Union from acquiring 
the degree of stability and power necessary for growth and 
effectiveness. 

In 1879, when the union seemed to be on the verge of collapse, 
Mr. Adolph Strasser, its new president, proposed a plan of re- 
organization, the aim of which was to increase the revenue and 
extend the functions of the international office. The basis of this 



16 Johns Hopkins University Circular [220 

new system, — which is now known as the "nationalization and 
equalization system" — is the requirement of uniform dues and 
initiation fees from members throughout the entire organization, 
and the equalization of the funds among the local bodies. There 
arose from this practice an entire community of funds, since all 
revenues regularly accruing were regarded as the property of the 
international union and were simply held in trust by the locals. 
Thus, the effect of the system was to do away with the independent 
treasuries formerly maintained by the locals. It also resulted in 
the abolition of the old per capita tax, levied for the expenses ,of 
the general office of the international union. The international 
president with the consent of the executive board of the union 
may now draw upon the funds in any local unions he may select, 
in order to meet the expenditures incurred by the headquarters of 
the general organization. 

It follows from the above arrangement that no local can refuse 
financial assistance to another when ordered to do so by the 
general officials. Neither can any particular one, because of a 
less strain upon its income, enjoy an advantage over the others 
for any length of time. By the process of equalization, carried 
out at certain intervals, each shares alike in the fortunes or mis- 
fortunes of the others. 

The successful working of this system requires, necessarily, a 
limitation upon expenditures for local purposes which must vary 
according to the number of members composing each local. Thus, 
unions having a membership less than thirty may expend for local 
purposes, as much as thirty per cent, of their gross receipts while 
those whose membership ranges from thirty to fifty and from 
fifty upwards are limited to twenty-five per cent, and fifteen per 
cent., respectively. If a local union happens to expend more 
than its legitimate portion or draws upon the surplus fund in its 
possession without official sanction, it must assess its membership 
to make up the deficiency. Failure to do so, renders it liable to 
suspension from the international organization. 

As may readily be inferred, the system also requires a thorough 
and constant supervision over the officers of the local unions and 
frequent examination into their accounts. Provision was early 



221] The Economic Seminary, 1903-1904. 17 

made that the secretaries of the locals should report all fiscal 
transactions at regular intervals to the international headquarters, 
and that accouuts with the latter should be traced by a system of 
stamp receipts. Further provisions for audit were later adopted. 
In 1888, the employment of two examiners, known as 
' ' Financiers ' ' was authorized, whose duty it became to visit the 
various locals for the purpose of inspecting their accounts. These 
officers report their findings to the international president, who 
republishes the same in the official journal of the Union. With 
these safeguards, notwithstanding the fact that the amount of 
money passing through the hands of the local secretaries is about 
one million dollars annually, and that the fund held in trust by 
the locals is sometimes equal to half that sum, there has not been 
lost, on an average, more than two hundred dollars a year. 

This manner of handling the ijunds in the Cigar Makers' Inter- 
national Union, although common among British trades unions 
is comparatively little known among labor organizations in the 
United States. The fact that it greatly impairs the autonomy of 
the local unions and gives the general officers increased duties and 
greater powers has prevented it to a certain extent from gaining 
much favor among American organized laborers, despite its many 
advantages. Its adoption by the Cigar Makers, however, resulted 
in immediate good to their organization, both in membership and 
in financial resources. Besides extending gradually its system 
of benefits, the Union has maintained itself intact, through 
numerous conflicts and severe industrial depressions. Its success, 
along these lines, has frequently induced leaders in other trade 
unions, to endeavor to inaugurate similar financial systems in 
their respective organizations. 



18 Johns Hopkins University Circular [222 



EMPLOYERS' ASSOCIATIONS. 
By F. W. Hilbert. 

A recent development of the labor movement is the large 
number of employers' associations formed for the purpose of 
dealing collectively with labor. These are generally militant in 
nature, though some are notably conciliatory. They may be 
classified into : 

I. Trade Associations: 1. Local. 2. National. These limit 
membership to a particular trade or business. 

II. Mixed Associations: 1. Local. 2. National. These have 
members from any trade or business. The Locals may be again 
divided into (a) those which limit membership to employers, 
(5) those which do not so limit membership. 

III. Federated Associations: 1. Local. 2. National. Each 
of these may be divided into (a) federations of closely allied 
trades, (b) federations of various trades and businesses. 

I. 1. Employers in a single industry have in many cases 
been organized for years into associations for various purposes. 
Sometimes they dealt as a body with labor unions, but members 
could make agreements with employees independently of the 
association, and in the case of strike the weaker member could 
not expect the support of the stronger member or of the association. 
This class is most conspicuous in the building trades. In Chi- 
cago, for instance, the Carpenters and Builders' Association has 
been making joint agreements with the carpenters for about 
twenty years. As the union became more exacting, the master 
carpenters began to create a defense fund, and to centralize the 
power of the association in the hands of a standing committee of 
five with full power to settle all labor disputes. 

Another body that may be classed under this head because of 
the localized character of the industry, although of almost terri- 
torial extent, is the Illinois Coal Operators' Association. It is 
eminently conciliatory, and was organized "to negotiate and 
make effective agreements with labor unions, fixing the wages 



223] The Economic Seminary, 1903-1904. 19 

and conditions of employment in and about the coal mines of 
Illinois." It held together rather loosely until its reorganization 
in 1901 when each member was obligated "to maintain and ob- 
serve contracts and agreements entered into by the association." 
It has no defense fund and is unincorporated. It puts its faith 
largely in the power of public opinion to compel the miners to 
abide by their agreements. Through its example state associa- 
tions have been formed in Ohio, Indiana and Pennsylvania, and 
representatives from all these meet representatives of the Mine 
Workers' Union annually to negotiate what is called the Inter- 
State Agreement. There is however no organic relation among 
these state associations. 

I. 2. The Stove Founders' Defense Association, formed in 
1886, was the first effective militant association, and it has served 
as a model for nearly all of that type since then. The initiation 
fees and annual dues were set aside for ordinary expenses. A 
defense fund was created by each member contributing ten cents 
per month for each moulder employed. Complete control over 
this fund was vested in a committee, to which were referred all 
labor difficulties. In case the union went on strike, the employer 
was defended (1) by casting such work as he might require at 
the foundries of other members, (2) by securing other moulders 
to work in his own shop, (3) by compensating him for loss up to 
$2 per day for each man usually employed. All necessary police 
protection and legal expenses were paid from the defense fund. 
By such means, the Association fought the Iron Moulders' Union 
until 1891, when at the request of the National Union, an agree- 
ment was made whereby a joint board was created to settle all 
disputes by conciliation. The agreement has not yet been vio- 
lated either by the Union or by the Defense Association, although 
the conference board has settled more than two hundred and fifty 
disputes. 

The National Founders' Association, organized in 1898, has 
a similar agreement with the Iron Moulders' Union. 

The National Metal Trades' Association was projected by mem- 
bers of the Founders' Association whose manufacturing plants 
included other metal industries. A national agreement was made 



20 Johns Hopkins University Circular [224 

with the Machinists' Union for the year 1900-01, but at its 
expiration the Union went on a general strike. Since then agree- 
ments have been only local in character, although overtures for 
a national agreement have since been made by the machinists. 
The American Newspaper Publishers' Association, a concilia- 
tory body of rather loose texture, has a general arbitration agree- 
ment with the International Typographical Union. 

II. 1. (a). The Employers' Association of Dayton, Ohio, is 
one of the most aggressive and influential of this type. Formed 
in 1900 with thirty-eight members from all lines of business, it 
has now about three hundred. The structure is similar to that 
of the Stove Founders' Defense Association. Defense contribu- 
tions are three cents per man employed per month. All labor 
difficulties are handled by a committee of five. In order to meet 
the policy of labor unions to make demands upon the weakest 
employer first, the association has taken in several when threat- 
ened by strikes. It has organized among its trusted employees 
a union called The Modern Order of Bees. Through the influ- 
ence of the Dayton Association upwards of sixty similar associa- 
tions have been formed in different cities. Of these the one in 
Columbus, Ind. , has recently adopted a form of individual agree- 
ment with employees. 

II. 1. (6). This type of association is represented by the Citi- 
zens' Alliance. The only qualification for membership is that 
' ' the applicant be not a member of any labor organization which 
resorts to boycotting or any form of coercion or unlawful force. ' ' 
Employers generally consider such an organization more effective 
than a strictly limited employers' association in meeting the ex- 
cesses of unionism in particular localities. In some places, as 
for instance, Columbus, Ind., there exist both an Employers' 
Association and a Citizens' Alliance. Many employers are mem- 
bers of both, and they induce their trusted employees to join the 
latter organization. 

II. 2. The single example of the national mixed type is the 
American Anti-Boycott Association. It is a secret organization 
composed of manufacturers most of whom are members of other 
employers' associations. Funds for aggressive action are obtained 



225] The Economic Seminary, 1903-1904. 21 

from monthly dues of one-tenth of one per cent, of the monthly 
pay-rolls of its members. Its purpose is to fight by legal means 
the boycott of labor unions, and to secure statutory enactments 
against the boycott. Alabama is the only state thus far to pass 
such a law. The energies of the Association are now mainly 
directed to taking certain typical cases to the federal courts in 
order thereby to create legal precedents. 

III. 1. (a). The local employers' associations in the building 
trades were probably the first to federate. In some cases they 
were merely associated together in a contest with the local 
federated unions. In other cases special organizations were 
formed, as in Chicago. There the fifteen associations of contract- 
ors formed in 1900 the Building Contractors' Council. Annual 
dues were paid by each association and a defense fund was main- 
tained by assessment. The executive committee was given full 
power, and after a memorable lock-out it succeeded in dictating 
the terms of the resulting agreements with the different unions. 
In 1903 a similar federation was formed in New York with even 
more centralized power. The individual employers are bonded 
and a more satisfactory form of agreement with the union has 
been developed. 

III. 1. (6). The Chicago Employers' Association is a local 
federation of considerable power. It is composed of about forty 
distinct trades or businesses, each with its own separate body. 
Members are pledged to assist one another in labor troubles and 
to stand for the principles of the Association. It has obtained, 
by the assistance of experts, statistics on the variations in the 
local cost of living as a basis on which to claim readjustment of 
wages. Its methods of combating the unions are similar to those 
already mentioned. 

III. 2. (a). At the close of 1903 there were formed two 
national federated associations. The National Building Trades 
Employers' Association started with one hundred and thirty- 
six associations in forty-six cities. These associations are federated 
locally like the Chicago and New York Councils, and local 
conditions determine wages and hours of labor, although there is 
a sentiment for uniformity in this respect, and national agree- 



22 Johns Hopkins University Circular [226 

ments may eventually be made. Certain principles taken from 
the Chicago Council's agreement were made the basic principles 
of the Association, with none of which local agreements are per- 
mitted to conflict. 

III. 2. (6). The Citizens' Industrial Association of America 
is composed of all kinds of local, state and national bodies, 
organized especially to meet labor conditions. Each constituent 
organization pays dues at the rate of fifty cents per annum per 
employing member, the amount to be not less than $10, nor more 
than $200. An executive committee of fifteen is vested with full 
authority to make by-laws for the government of the association 
and to put them into effect. The basic principles adopted by 
the association are : (1) no dealings with walking delegates, 
(2) the open shop, (3) no sympathetic strikes, (4) no restriction 
in the number of apprentices, (5) no restrictions of output, (6) 
the full enforcement of the law. At present there are about two 
hundred and fifty constituent associations. 

Employers' associations have succeeded to a considerable 
extent in checking the aggressions of the more radical unions, 
and also in removing some of the restrictions peculiarly irritating 
to employers. After a test of each other's strength, they appear 
to be generally willing to enter into agreements with the conser- 
vative unions, and the unions seem to be holding the ground 
already gained in raising wages and in shortening the labor day. 
Those unions that are led by able and conservative men with 
sufficient power to make a conservative policy effective have 
generally gained in wages, in steadiness of employment and in 
better working conditions; while on the other hand, the employers 
have obtained uniformity of labor-cost and some degree of in- 
surance against labor difficulties. 



227] The Economic Seminary, 1903-1904. 23 

APPRENTICESHIP IN THE BUILDING TEADES. 
By James M. Motley. 

The mutual obligations of employer and apprentice are largely 
determined by the terms of their contract. In many cases this 
agreement is drawn up by them alone, though the union requires 
that a copy thereof shall be filed with the secretary of the local 
branch. Other unions insist upon certain regulations within this 
contract. In 1901 the Stone Cutters of Baltimore ordered a 
strike because the employers required apprentices to work more 
hours per day than journeymen (Article 5, section 1 of the 
Constitution of the Journeymen Stone Cutters' Association pro- 
vides that ' ' All apprentices on going to the trade shall serve a 
term of four years but in no case shall they work more hours than 
journeymen"). In cities where employers and unions are well 
organized, all questions relating to apprentices, are usually re- 
ferred to a joint board, composed of representatives from both 
organizations. In such cases the apprentice enters the trade and 
continues his work under rules already prescribed for him (Sec- 
tion 1 of the agreement between the local Carpenters' unions and 
the Builders' Association of Chicago, May, 1902 is as follows : 
1 ' Apprentices shall be under the jurisdiction of the Joint Arbitra- 
tion Board which has the authority to control them and protect 
their interests subject to approved indentures, entered into with 
their employers and rules adopted by Joint Board " ) . 

In general the employer agrees to give the apprentice regular 
employment and ample opportunities to learn the trade ; the 
apprentice promises faithful service during a stated number of 
years, while the union obligates itself to protect both employer 
and apprentice. Under the old form of indenture the apprentice 
often came under the immediate supervision of his employer who 
taught him the trade. The present day apprentice receives his 
instruction from the foreman or a journeyman, the practice being 
different in various unions. With some the apprentice is 
assigned to one particular journeyman to whom he must go for 
all instruction ; in fact he is forbidden to ask questions of any 



24 Johns Hopkins University Circular [228 

other workman. This journeymen is required to give proper 
instruction to the boy under his care, failing to receive which the 
apprentice may appeal to his employer or the union, since both 
are obligated to give all boys put to the trade, a fair chance to 
learn it. With other unions the apprentice is assigned to no 
particular workman, and is privileged to ask questions of any 
journeyman who must take a reasonable portion of his time to 
give him the desired information. From his first and simplest 
lessons in caring for and handling his tools, the apprentice 
with each year's service takes up more difficult and complex 
work. The rapidity of his advancement is determined by his 
ability, his interest in the work, and the opportunities given him 
by his employer and instructor. 

The number of hours constituting a work day for the apprentice 
is in general a matter of agreement between him and his employer, 
though in some places, this is determined by agreement between 
employers and union. It is the policy of the union to prevent 
employers from working apprentices longer than journeymen. 
As a matter of fact, apprentices rarely, if ever, work fewer hours 
per day, and often more than regular workmen. 

The apprentice agrees to serve an apprenticeship of a certain 
number of years, varying in different trades and even in the 
same trade at different places. In such work as glass blowing 
where business is suspended during certain seasons, the remaining 
months constitute a year as provided in the contract. In an 
agreement between the Carpenters' Locals and the Builders' 
Association of Chicago, it is provided that any contractor taking 
on an apprentice shall engage to keep him at work in the trade 
for nine consecutive months in each year and see that during the 
remaining three months of the year the apprentice attends school. 
Conditions of business frequently determine the number of months 
an apprentice may work. If business be brisk and the employer 
has sufficient contracts on hand the apprentice may work almost 
the entire calendar year, provided there be no agreement to the 
contrary; while during periods of business depression the employer 
is often unable to supply work and the apprentice is actually 
engaged only a few months each year. 



229] The Economic Seminary, 1903-1904. 25 

The wages of the apprentice are always less than those of 
journeymen, and are usually fixed by agreement between the 
boy and the employer. They are ordinarily progressive, that is, 
increasing with every year's service. But when apprentice rules 
are formulated by employer and union, the wages of the appren- 
tice are virtually fixed by them; at least the minimum is so de- 
termined. A typical form is taken from the agreement between 
the local unions and the Builders' Association of Chicago (section 
7) : "The rate of wages for an apprentice at date of indenture 
shall in no case be less than $260 for the first year, $300 for the 
second year, $350 for third year, $400 for fourth year." 

It is to the best interest of the union as well as to the general 
welfare of the boy, that the latter should spend his entire term of 
service at the same place and with the same employer with whom 
he begins it ; otherwise, being easily influenced by the prospect of 
higher wages and naturally fond of change, he would be constantly 
moving from place to place and perhaps finally be admitted into 
the union without serving a full term. To prevent this many 
unions have strict rules in regard to runaway apprentices. The 
Stone Cutters' rule offers a good example : ' ' All apprentices 
registered in each branch to a contractor shall be compelled to 
furnish their time with the same, unless prevented by death or 
other cause." The son of a journeyman may be excepted, since 
with many unions it is an unwritten rule that a journeyman has 
the privilege of taking his son with him wherever he may go ; 
although this is not a universal law. With some the runaway 
apprentice is regarded in much the same way as the ' ' scab, ' ' and 
in order that he may be recognized should he attempt to gain 
admittance into the union, many trade journals publish a list of 
1 ' runaways, ' ' wherein are placed notices of all apprentices leav- 
ing their employers without just cause. Such a notice usually 
contains the name and location of the employer — the name, age 
and residence of the boy, the portion of his term served and the 
clue to his probable whereabouts, if known. Unless released, he 
must fulfill his contract with the employer apprenticing him, or 
leave the trade. 



26 Johns Hopkins University Circular [230 

The employer cannot discharge the apprentice without satisfac- 
tory explanation to the union ; at least if dismissed without suf- 
ficient cause, he cannot be replaced until expiration of the time 
he was to serve. Ordinarily the foreman dismisses the apprentice 
at the request of the employer ; yet should it appear that an 
attempt was being made by the employer to exploit the boys by 
retaining them while wages were low and discharging them before 
they are competent journeymen, the union claims the right to 
interfere in behalf of the apprentice. Some unions permit the 
employer to take on trial only so many during a certain time, 
likewise limiting the boy in the number of trials he may be given. 

In case the employer suspends business before the apprentice 
has completed his term, he is expected to aid the boy in securing 
another position. To assist the apprentice thus thrown out of 
employment, the union frequently issues him a permit to secure 
work wherever it may be found, otherwise he would be compelled 
to work within the jurisdiction of the union where he had begun 
his apprenticeship. The union thus receiving an applicant for 
time, makes a thorough examination as to the term served and 
the work done. It also reserves the right to determine the addi- 
tional time the apprentice must serve ere he can become a mem- 
ber of the union. 

Having served the required number of years, the apprentice 
finds it an easy matter to become a member of the union. In 
fact he is taught unionism along with the trade and is offered 
special inducements to become a member at an early date. Some 
unions, however, require him to present a certificate of proficiency 
from his employer, while others subject him to an examination 
and, if found deficient, compel him to serve additional time. 



231] The Economic Seminary, 1903-1904. 27 

POPULAR GOVERNMENT IN THE CIGAR MAKERS. 
By T. W. Glocker. 

The Cigar Makers' International Union might be described as 
a modern not a primitive democracy ; that is to say, while the 
members have not attempted to conduct their organization directly, 
they have not, on the other hand, resigned the machinery of gov- 
ernment completely into the hands of their representatives. In 
the first place, strict control is kept over their popularly-elected 
officers and delegates to convention by a continual referendum or 
submission of their work for the approval of the whole body of 
members. In the second place, by the direct initiation of legis- 
lation, and in other ways, each member shares directly the duties 
of those officers and delegates. 

Thus, on the legislative side, not only must the work of the 
constitutional convention be submitted to popular vote, section by 
section ; but, during the long interval of eight years between con- 
ventions, legislation may be initiated by individual members, who 
propose, through their respective locals, amendments which, if 
seconded by a sufficient number of other locals, must be submitted 
at once to a general vote. 

On the executive side, all applications to strike made by unions 
of less than twenty-five members are passed upon by the execu- 
tive board ; but an appeal may be taken from that decision to a 
vote of the members. All applications to strike by unions of 
twenty-five members or more, are submitted at once to popular 
vote. 

On the judicial side, the whole body of members form a sort of 
supreme court, to which complainants, not satisfied with the deci- 
sions of the president and the executive board may submit any 
controversy or dispute arising under the constitution. 

How may we explain the existence of such a democratic form 
of organization in a country where republican or representative 
institutions hold such complete sway? Sidney and Beatrice 
Webb have ascribed the corresponding movement in England to 



28 Johns Hopkins University Circular [232 

the influence of a dominant theory or sentiment. In the primitive 
locals, this strong democratic feeling led the workman jealously 
to guard and to keep the control of affairs under the direct man- 
agement of the general mass-meeting of all members. When the 
locals united, however, to form the national body, this theory of 
direct popular control had to yield in part to administrative 
efficiency ; and this compromise has expressed itself in the present 
semi-representative form of government. 

Such an explanation, while logical and possibly true, is not, 
however, fully in accord with English and American political 
experience and practice. ' ' The Americans, ' ' says Bryce, ' ' have 
no theory of the State, have felt no need for one, being content, 
like the English, to base their constitutional ideas upon law and 
history. ' ' But they have had, he thinks, ' ' certain ground ideas, ' ' 
certain " dogmas and maxims," and chief among these is the 
political axiom that "the most completely popular government 
is the best." 

The historical development of the Cigar Makers, as an organiza- 
tion, would seem to illustrate the statement of Byrce, rather than 
the explanation of the Webbs. Probably, at no time in the 
history of the Union, would the men who shaped its policy have 
denied, if asked, the eminent desirability of a more popular form 
of government. Yet, during the period, when the movement 
towards a wider use of the popular vote was in full force, it is 
significant that the Journal of the Cigar Makers contains no 
idealization, no discussion, even, of the fundamental necessity 
and importance of more direct control and administration by the 
individual members. It is only during the last decade, after this 
form of government had been some time established that we find 
many pointing with pride to the part which each member plays 
in the administration of affairs, a condition of things, they hasten 
to add, which works very successfully in practice. 

If not the result of any conscious theoiy, to what may the use 
of the referendum and of direct legislation by the Cigar Makers 
be attributed ? To several causes, probably, rather than to any 
one circumstance. 

In the first place, the Cigar Makers fashioned their newly- 



233] The Economic Seminary, 1903-1904. 29 

formed organization upon the models that came under their 
observation. At home, they found the constitutional convention 
submitting its work for approval to the whole body of voters. 
From the English trade unions, they borrowed, either directly 
or indirectly, for use between conventions, the so-called 
"referendum." 

But direct popular control was confined, during these early 
years, only to matters of legislation. It was, moreover, in 
actual practice, formal rather than real. The amendments made 
by the convention were submitted en bloc; and unwelcome 
sections were often accepted in preference to a rejection of the 
whole work of the convention. Moreover, amendments made 
directly by the locals, were few in number, and were regarded 
as temporary or emergency measures to tide over the period 
until the next convention. Finally, the referendum was made, 
not to the individual members, but to the locals, as a whole. 
Within the local, such questions were, indeed, submitted invaria- 
bly to the general meeting ; but the provisions of the international 
constitution would have been satisfied had they been left to the 
local executive board for decision. 

About 1877, there occurred a change ; and from that time 
on, the form of government grew rapidly more democratic. This 
was the period, moreover, of the struggle for supremacy which 
took place between the international and the local. Nor was 
this coincidence altogether accidental ; for in this struggle is to 
be found explanation, partial at least, of the movement towards 
democracy. 

The clash betweeu local and international interests affected 
this movement from two sides. On the one hand, the jealousy 
of the international made the local maintain tight grip on the 
delegate and keep him a mere agent who voted only as advised 
by his constituents and never according to his conviction as to 
what was best for the international. When it was found im- 
possible, moreover, to limit the delegates to proposals that had 
been threshed out before the opening of a convention, strict con- 
trol was still kept over these delegates by the submission of 
their work section by section to the vote of the locals. In short, 



30 Johns Hopkins University Circular [234 

through jealousy of the international, the referendum had at last 
become a reality. On the other hand, it was found that pro- 
posals which had received the sanction of a majority vote, gave 
more satisfaction than similar proposals left to the decision of 
the officers and delegates. Hence nationalists, like Adolph 
Strasser, who desired a strongly centralized organization, took 
advantage of this wholesome respect for the will of the majority 
to offset the power of the individual locals ; and many questions 
even of an executive and judicial nature were submitted to a 
vote of the locals. 

But from an international standpoint, it was obviously unfair 
that the smaller locals should have the same weight in voting as 
the larger ones. Moreover, by this method of voting, it was 
possible for the minority to overrule the majority, inasmuch as 
only a majority of locals was required to pass a proposition, and, 
within the local itself, only a bare majority of members. The 
final victory of international autonomy is, therefore, marked 
about 1 884, by the substitution of the popular for the local vote. 

But, while the spirit of localism must have hastened the 
tendency towards a more frequent use of the popular vote, 
nevertheless, other causes have undoubtedly been at work. For 
example, the financial economy which led to the lengthening 
of the interval between conventions, created at the same time 
the necessity for greater reliance on the initiation of legislation 
by the individual members. Moreover, the idealization of the 
popular vote, which has developed of late with a realization of 
its practicability, has at least tended to check any reaction 
towards a more republican form of organization. 



235] The Economic Seminary, 1903-1904. 31 

SHOP KULES IN THE BALTIMORE BUILDING TRADES. 
By S. Blum. 

The trade regulations of the bricklayers' and masons', the 
carpenters' and the stone cutters' unions have been studied with 
special reference to their effect in Baltimore. The investigation 
has been simplified by the fact that there is no sympathetic 
agreement in Baltimore between the several unions in the building 
trades. Each organization works out its own destiny without 
regard to any other. A union carpenter is very careful not to 
work with a ' ' scab ' ' carpenter, but he will not hesitate to rub 
shoulders on the same job with a "scab" bricklayer. Even 
among the unions themselves, there is not perfect accord. At 
present a strong jurisdictional fight is in progress between the 
stone setters, who belong to the stone cutters' union, and the 
masons. The stone setters assert, that inasmuch as the stone is 
cut by members of their union and as they do much of the cutting 
on the spot, the stone setting belongs to the stone cutters' union. 
On the other hand, as mortar must be spread the masons hold 
that the work belongs to them. In the unions themselves there 
is frequently no clear understanding as to where one class of work 
ends and another begins. At present it appears that the masons 
will win out for the bricklayers have come to their aid by refusing 
to back up or lay bricks upon any stone not set by members of 
the Bricklayers' and Masons' Union. This conflict is a cause of 
much ill feeling between the two unions and among the contractors, 
who do not sympathize with either party to the conflict, but who 
simply look to results. 

In addition to jurisdictional rules, the important trade union 
regulations in the Baltimore building trades are as follows : 

1. Rules to maintain the efficiency of the union. The most 
interesting regulation of this class, common to all the unions 
examined, is the rule, against ' ' lumping and sub -contracting. ' ' 
The objection to "lumping" is that by sub-dividing a job 
among smaller contractors it becomes impossible to watch the 



32 Johns Hopkins University Circular [236 

work, and to see that union rules as to hours, wages, and piece- 
work are enforced. In other words, the unionists fear that a job 
which is nominally "union " will become virtually "scab" by 
sub-contracting. On the other hand, the contractors assert, 
that instead of sub-contracting work to smaller shops, the 
tendency is for the smaller and poorly equipped shops to 
sub- contract to larger and more adequately equipped ones. A 
contractor stated to the writer that a small firm employing 
non-union men had engaged him to carry out part of a contract 
for which the firm lacked facilities. When the men found out 
that this was a sub -contracted job, they refused to work on it 
despite the fact that by so doing the union would be performing 
work that would otherwise have been ' ' scab " . It is difficult 
to determine the merits of the case. The issue is sharply drawn 
and is the cause of much bitterness. The primary idea of the 
unions is that by taking a firm stand in this matter they will be 
better able to withstand an infringement of other union 
regulations. 

2. Rules to maintain the skill of the craft. This class of 
regulations is typified by two rules of the bricklayers' and 
masons' . One forbids mortar to be spread on a wall with any 
other instrument than a trowel ; the other forbids a laborer to 
spread mortar. The first of these rules restricts the output, but 
there is also a strong feeling among the bricklayers that using 
a trowel is the act of a skilled artisan and that the use of a 
shovel in place thereof is a distinct reduction of the skill of 
the craft. 

3. Rules to maintain the standard rate of wages. The most 
interesting regulation for maintaining wages is that of the stone 
cutters which gives to each local the power to refuse to receive 
stone cut in another place. The rule is intended to protect union 
stone cutters receiving high wages from an influx of stone from 
places where labor is cheaper. As far as Baltimore is concerned, 
the rule is a bad one, seriously affecting both the unionists and 
the employer. Baltimore is a stone exporting center, the wages 
are fairly good and the work seems to be done under union 
conditions. The local trade is thus put in the position of being 



237] The Economic Seminary, 1903-1904. 33 

discriminated against without power of retaliation. At present 
there is a supply of cut stone in Baltimore ready for shipment 
which will not be shipped until the embargo is raised. This 
condition of affairs is the cause of much complaint, and strong 
efforts will probably be made in the next convention to have it 
modified or repealed. The rule has tied up work in one of the 
large local stone cutting yards. A certain Washington contract 
was given to a Baltimore firm. On hearing this, the Washing- 
ton local decided to put an embargo on Baltimore cut stone. 
The Baltimore stone cutters and the contractors were in perfect 
accord, but when the Washington decision was made known, 
work stopped and a strike inaugurated which has lasted for some 
months and is likely to last for some time to come. This is one 
of the few trade union regulations which is opposed by both 
employee and employer. 

4. Rules restricting output. Among none of the unions does 
there appear to be any definite stint which is known as a day' s work. 
They all speak of a ' ' fair day' s work, ' ' they all oppose ' ' rushing ' ' 
and they all expect an exceptionally rapid worker to hold himself 
in check so that the efficiency of the average man or even the man 
a little below the average may not suffer by too great contrast. The 
standard of the union is not that of the best man in it but 
approximates to that of the average man. There are certain 
positive restrictions, however, among which may be mentioned 
the rules of the bricklayers and masons' against ' ' putting up 
the line ' ' more than one row at a time, that is until the entire 
row of bricks is finished. Not until after the recent fire did the 
stone cutters' allow planer- cut stone to be brought into this city. 
The planer is a machine that can do the work of from four to 
seven or eight men. The local union has had little experience 
therewith and the unionist attitude has been not to oppose the 
introduction of the machine but to demand that it shall be run 
by a member of the organization. Since the fire, owing either 
to a public-spirited desire to hasten work or fearing that under 
any circumstance planer-cut stone would not be kept out, the 
union has given notice that the machine cut stone would be set 
in Baltimore. 



34 Johns Hopkins University Circular [238 

Trade union regulations in the building trades of Baltimore 
do not seem to be as drastic as they are reported to be in other 
large cities of the United States ; yet many of them are a cause 
of exasperation to employers who regard them as an unnecessary 
interference with their business. Since the fire the conditions in 
the building trades have changed radically and it will be sur- 
prising if many interesting and instructive developments do not 
occur. 



ORIGIN OF THE BENEFICIARY FEATURES OF THE 

CIGAR MAKERS' INTERNATIONAL UNION 

OF AMERICA. 

By J. B. Kennedy. 

Beneficiary features in the form of a loan system seem to have 
been associated with the very beginning of the Cigar Makers' 
International Union. Based on loosely constructed principles, 
and administered badly, this system was abolished at the Detroit 
Convention in September 1873. Immediately thereafter the 
Union began energetically the establishment of a better system. 
The unemployed were regarded as a menace not only to the local 
union but to the membership in general. Experience showed 
that it was far better to pay a considerable amount to remove 
surplus labor to other fields of employment than to allow it to 
remain idle. Some device was necessary by which the cost of 
transportation might fall upon the whole organization and not 
upon the local. 

Before an efficient system of loans could be adopted by the 
International Union it was necessary to convert the locals to a 
belief in the system. The method pursued was the natural one, 
viz., adoption and trial by locals of various loan systems. As a 
result of these experiments Union No. 122 proposed in October 
1878 a plan for aiding "all traveling craftsmen in need." 
Remembering the failure of the former system the members of 
this union declared themselves in favor of giving a specific sum 



239] The Economic Seminary, 1903-1904. 35 

as an absolute gift and requested the International President to 
lay the plan before all locals for the purpose of having it em- 
bodied in the International Constitution. The project failed to 
reach the International Convention, but it served to awaken a 
deeper interest in the movement, and finally resulted in the 
development of a project proposed in August, 1879, by Union 
No. 144. This plan entitled a member of six months' good 
standing to a sum aggregating not more than $20.00. It was 
adopted in September, 1879, and went into operation on May 1, 
1880. Much opposition to the plan developed in consequence of 
the fact that it provided no limit to the first amount a member 
might draw. After four years' trial this amount was fixed in the 
Constitution of 1884 at $12.00 and further reduced to $8.00 in 
the Constitution of 1896. Provision was also made that the 
member should, after finding employment, return to the union 
10% of his weekly earnings; these modifications together with 
some other minor regulations placed the loan system upon a 
substantial basis. 

The strike benefit prior to 1879 was a "paper" benefit. It 
provided that members on strike should receive $7.00 per week, 
provided, however, that they had been out at least five days be- 
fore being entitled to said benefit, and that all benefits should 
date from the approval of the difficulty by the union or its 
inspection committee. The benefit seems to have been paid with 
little regularity, and the lack of specific regulation caused a 
decrease in members and general dissatisfaction with the system. 
The need of improvement was shown by the New York strike of 
1874 against tenement house work, at which time the funds of 
the union were insufficient to maintain its claims. The first 
changes were made by the locals as in the case of the Loan 
System. Local No. 144 proposed an amendment which was 
adopted by the necessary five locals in April, 1879, and by the 
International Convention in September, 1879, and embodied in 
the Constitution of 1880. It provided that members on strike 
should receive $4.00 per week, to commence on the day of 
application, that each local should retain 15 cents per member 
per month and 25 cents per each new member as a strike fund, 



36 Johns Hopkins University Ocular [240 

and that each claimant member must be of three months' good 
standing. These specifications have been modified from time to 
time uotil at present a member on strike is entitled to $5.00 per 
week for the first 16 weeks, and $3.00 per week thereafter till 
the strike or lockout ends. The union retains 25 cents per 
member per month and 50 cents per new member for a strike 
fund. 

In various local unions efforts were early made to establish a 
system of sick benefits. In September, 1876, Mr. Gompers of 
No. 144 proposed to his local union that members sick and out 
of work should pay no dues. This was the first step in the 
adoption of a sick benefit. Thereafter we find the most active 
unions, such as No. 144, 39, and 88 engaged in discussing the 
need and importance of a permanent sick and death benefit 
fund. In June, 1877, Local No. 39 of New Haven proposed a 
sick benefit clause for the consideration of the locals ; it was 
brought before the International Convention in September of the 
same year, but failed of passage. In June, 1879, Local No. 87 
of Brooklyn adopted a sick and death benefit providing $5.00 
per week for 13 weeks and in case of death $50.00 for funeral 
expenses. The adoption of this plan aroused much interest ; 
members paid their dues more regularly and better attendance 
was secured. In consequence of this growth of union activity, 
No. 144 again proposed a national sick benefit clause. The 
Committee on Constitution reported favorably thereon at the 
twelfth convention and it was submitted to the locals for con- 
sideration at the next convention. In September, 1880, the 
present system of Sick and Death Benefits was adopted. It 
originally provided that a member of six months' good standing 
in case of sickness should be entitled to $3. 00 per week for the 
first eight weeks, and $1.50 per week for the next eight weeks ; 
in case of the death of a member of one year's standing $25.00 
was allowed for funeral expenses. The sick benefit as it now 
(1904) stands gives to a member of one year's standing $5.00 
per week for a period of thirteen weeks, allowing no other claim 
during the same year. 

The death benefit has since been increased. On the death of 



241] The Economic Seminary, 1903-1904. 37 

a member of five consecutive years' standing, the wife or legatee 
is entitled to $200.00 ; if of ten years' standing $350.00 ; if of 
fifteen years' to $550.00 ; and any member of fifteen years' 
standing who has become incapable of working at the trade is 
granted a life membership by which he is permitted to retain his 
claim upon the death benefit on payment of ten cents per month 
quarterly. 

The out of work benefit was among the first discussed after 
the organization of the International Union and the last to be 
adopted. Repeated efforts were made for its establishment and 
as often failed. This benefit also had its actual origin in a local 
proposal. The strongest advocacy of such a benefit came from 
Locals No. 144 and 39. No. 144 paid a local out of work 
benefit, which proved successful, and as early as 1876 proposed 
a plan to the International Convention which was defeated. 
Other locals however were induced to try the same plan, and in 
1877, No. 39 adopted the system. Early in the same year the 
plan was proposed to the International Convention. Although 
International President Hurst endorsed the proposal and recom- 
mended that it be placed before the locals for consideration, it 
failed to pass the International Convention and Mr. Gompers' 
Labor Bureau system for locals was adopted instead. This 
served to hold what had been gained, and marked the beginning 
of the fight in the International Convention. During the next 
ten years the idea grew steadily. Every eflort was used by the 
advocates of the benefit to show the influence such a system 
would have in adding members to the union and in holding the 
members. The system was finally adopted in September, 1889, 
and put in operation by the last of January, 1890. As origi- 
nally adopted in 1889, it provided that a member of one year's 
good standing should be entitled to $3.00 per week and 50 cents 
for each additional day ; that not more than $72.00 to any one 
member be granted during any one year ; that no benefit be 
granted between December 16 and January 15, and July 1 and 
July 15 of any year ; and that having received benefit for six 
weeks, the member should not be entitled to another benefit for 
seven weeks thereafter. With the exception of a reduction of 



38 Johns Hopkins University Circular [242 

the total amount receivable per year from $72.00 to $54.00, the 
clause has remained unchanged to the present time. 



TRADE UNIONISM AND INDUSTRIAL EFFICIENCY. 

By Henry White, 

General Secretary of the United Garment Workers of America. 

The organization of the wage-workers has proceeded so far 
that the dangers it gives rise to have become a matter of serious 
concern. It is charged that one of the injurious tendencies of 
unionism is to curtail the efficiency of the worker and to restrict 
production generally, that as the unions gain in power this 
tendency becomes more marked. If such is the case then the 
unions interfere with progress, because the social welfare is best 
served by increasing the efficiency of the individual. There are 
two ways of looking at this question, from the standpoint of 
the immediate, and from the permanent. Judging the union 
methods by the immediate, they undoubtedly tend to curtail 
production. The shortening of the working time and the pre- 
vention of rush work, for example, are restrictions upon the 
quantity of the output ; but if the object of such restrictions is 
to guard against the premature exhaustion of the laborers they 
are economic and justifiable. 

Sweating is a means of securing the maximum output, but it 
consumes the potential power of the worker at the same time 
and is, from the social standpoint, wasteful and uneconomic. 
For this reason also child labor is forbidden by law, which is a 
plain restriction of output. The individual employer, not being 
charged with the care of his employees, and being able to 
replace them when worn out, is only interested in what he can 
get out of them day by day. Restrictions, therefore, are de- 
fensible where their purpose is to check this draining of the 
laborers' vitality for the employer's immediate gains. 

The experience of the workers, the uncertainties and temporary 
hardships caused by labor-saving methods and their misconcep- 



243] The Economic Seminary, 1903-1904. 39 

tion of the operation of industry, together with the usual human 
weakness, explain why there should be any further tendency on 
their part to restrict production. It is vain to deny that there is 
such a tendency, since the attitude of the workers is about the 
same as that of most people, the only difference being that when 
organized, working men are able to some extent to enforce their 
opinions. When a workman joins a union he is not transformed 
into a saint. No one would hold that the union is actuated by 
the highest wisdom, and that the unionist, because he acts with 
other workmen in common effort, puts the welfare of society above 
his own. Self-interest is the basis of unionism. Workmen come 
together for the purpose of advancing themselves first, but it does 
not follow that self-interest is a detriment to others. We can 
pursue our interest in such a way as to help, as well as to injure, 
others. This, however, can be said of the worker, that in order 
to improve his own condition he can only do it by helping to raise 
the condition of his fellows, at least that group with which he is 
directly identified. But it is possible for wage workers to go so 
far in pursuing their particular interests as to trespass upon the 
interests of other groups, and also of society. That is likely to 
happen, and often does happen. You would hardly expect a 
body of workingmen to exercise more self-restraint than others 
would under the circumstances. In the case of the union the 
cooperation of large numbers is required, which makes it exceed- 
ingly difficult for them for any length of time to maintain a posi- 
tion hostile to the public interests. Even were they to succeed 
for a time they would soon have arrayed against them the organ- 
ized employers, who, in the light of recent experience, have 
shown themselves well able to resist union excesses. There is 
also an economic check. The restrictions that unions are able 
to impose are limited by the competition of the non-union em- 
ployer, who would be free to utilize the newest methods, and 
therefore put the union employer at a hopeless disadvantage. 
The union, therefore, could not go very far in curtailing produc- 
tion, although it must be admitted that they can enforce irksome 
restrictions. The futility of any such attempt they are becoming 
aware of, as it is common to hear members say that it is useless 



40 Johns Hopkins University Circular [244 

to try and oppose progress, but this is not sufficient. They should 
understand that even if they should restrict output or suppress 
inventions it would not be to their advantage, because they can- 
not hope to improve their condition to any extent without in- 
creasing their working capacity. 

They should direct their efforts to securing a just share of an 
ever enlarging product instead of hoping to prolong their jobs 
and increase their pay by diminishing their productive power. 
There is the example of the countries where the crudest implements 
are used. The product of the worker is small, but the wage is 
also proportioned to it, in some cases not more than a few cents 
per day, and employment is not steadier. The constant rise in 
wages that has taken place during the past half century, the 
shortening of the working day, would not be possible unless the 
output of the worker was increased. The possibilities of unionism 
would be exceedingly limited without the increasing of the 
capacity of the laborer. Inventions have put in the reach of the 
wage worker what a few generations ago would have been con- 
sidered luxuries. Machinery has given him leisure and enables 
the worker also to tide over a longer period of idleness. 

The great drawback is the high uncertainty that inventions 
create, and the suddenness of the disarrangement. This must be 
met by the worker becoming more adaptable to the changing 
employments. The distress would be mitigated if his mental 
attitude were changed. He should get rid of the notion 
that he is destined to spend his life in the repetition of some small 
process. He should have a training that would enable him to 
shift from one branch of a trade to another, should it become 
necessary. Manual and technical education seems to supply that 
need, and it could be best provided by the public schools. The 
apprenticeship system is going rapidly out of use, as it was never 
intended for a variable system of industry. A method, there- 
fore, more in harmony with present requirements must supersede 
it. Manual training would not be in conflict with unionism, as 
some believe, but on the contrary, should promote it. Independ- 
ence and high wages go together. The workmen who is skilled 
in the use of tools and has an understanding of mechanical 



245] The Economic Seminary, 1903-1904. 41 

principles is more capable of accommodating himself to new em- 
ployments, and is, therefore, more likely to demand a suitable 
wage. His mobility is increased, which conduces to independ- 
ence, and robs inventions of their terrors. A distinction should 
be made between trade schools and manual training schools. The 
function of private trade schools appears to be the turning out of 
hastily taught workmen with a smattering of a trade, who are 
then thrust upon the labor market to become available during 
labor troubles. The union opposition to these private trade 
schools is, therefore, well founded. They are conducted purely 
in a commercial spirit, and the pupils are not taught the value of 
labor. 

What is specially needed is more enlightenment upon the econ- 
omic aspect of the question. There should be a better under- 
standing of the effect of machinery and of the operations of 
industry. The industrial system has become so complex that 
only a small part of it is seen at a time, and hence the confusion. 
Both the employer and the employed should know something 
about the nature of the service that they perform, the part that 
they play in the social economy. They should both be taught 
what their duties and responsibilities are, and that the value of 
their service can be measured only by its social value, by their 
contribution to the general welfare. 



THE THEOKY OF THE STANDARD RATE. 

By William H. Buckler. 

A standard rate of wages means, in ordinary parlance, that 
rate of payment which constitutes the usual remuneration of a 
given class of laborers at any given time and place. In this 
sense standard rates of wages have doubtless existed ever since 
the origin of the wage-system. But in its specialized modern 
sense the term standard rate means more than this. It denotes 
that rate of remuneration, per unit of output or of working time, 
which at any given time and place must be paid to all laborers of 
a given class, whenever they are employed. 



42 Johns Hopkins University Circular [246 

Mr. and Mrs. Webb have said that the establishment of such a 
rate is due to ' ' the insistence on payment according to some definite 
standard, uniform in its application" (Industrial Democracy, 
I. 318) and to "the determination to obtain identical payment 
for identical effort. ' ' Similarly the Industrial Commission has 
said that the standard rate means at bottom ' ' so much pay for 
so much output," (Report, xix, 819). But these explanations, 
although perfectly true, do not lay sufficient stress on the most 
vital feature of the standard rate, which is its compulsory 
character. 

Strict enforcement is of the essence of the standard rate; if it 
were not compulsory, it would be useless. Its establishment has 
sprung, not from the determination to fix the wages of each 
laborer in proportion to his effort or output, but from the desire to 
increase the money wages of all laborers in any given trade. 
And in order to do this effectively, the rule has been adopted of 
identical payment for identical effort, in other words, of uniform 
remuneration to all laborers in that trade. 

To understand the theory of the standard rate, we must then 
ask how money wages can be increased. Such an increase may 
be caused by anything which lessens the supply of labor, which 
increases the demand for it, or which increases the supply of 
money. But causes of that sort are comparatively slow in their 
operation, and are beyond the direct control both of the laborer 
and of the employer. What the laborer wants is some means 
within his control of immediately increasing his money wages ; 
in other words, of forcing the employer to pay him a larger share 
of the joint product. This can obviously be accomplished only 
in one of two ways, either by private initiative, or by State inter- 
vention. 

An increase in the rate of wages might conceivably be prescribed 
by statute, which is what Mr. and Mrs. Webb have called ' ' the 
method of legal enactment. ' ' If this were done, the State would, 
of course, compel the payment of the increased rate. But in this 
country, for constitutional reasons, that method is not available. 
Therefore, in the United States, an immediate increase of wages 
can only be secured, and its payment enforced, through the ope- 
ration, not of law, but of private initiative. 



247] The Economic Seminary, 1903-1904. 43 

Now it is clear that this initiative cannot come from the em- 
ployers of labor, since self-interest impels them to buy labor as 
cheap as possible. Even if some employers preferred to pay 
higher wages than the market rate, competition would prevent 
their doing so. Hence the only means by which an increase of 
wages can be immediately secured is through the initiative of the 
laborers. They must agree among themselves to insist upon an 
increased rate, and must then induce the employers to pay it. 

To accomplish this result three factors are obviously required. 
First, there must be an organization of the laborers, strong enough 
to unite them in demanding an increase, as well as to prevent any 
among them from accepting employment at the lower rate. Sec- 
ondly, the organization must find means of bringing pressure to 
bear on the employers. Thirdly, an agreement fixing wages must 
be made between the employers and the organization. These 
necessary factors, in short, are the Trade-Union, the Strike and 
the Collective Bargain. 

When these factors are present, and an increase is demanded, 
one of two things must occur. Either a strike will be declared, 
and work will cease until the trade-union abandons its attempt ; 
or else, with or without a strike, the employers will yield, and an 
increased rate of wages will result. That rate must necessarily 
be made compulsory, otherwise the increase would be impossible 
to maintain ; and to make it compulsory is the business of the 
trade-union. The union must insist that the employers shall not 
pay less, and that the laborers shall not accept less, than the 
wages stipulated in the collective bargain. The penalty of diso- 
bedience may be, for employers, the strike ; for laborers, a fine 
or expulsion from the union. The rate must also be uniform, 
for two reasons. It must be so, when demanded, in order that 
the laborers may feel that they will all alike benefit by its estab- 
lishment. It must be so, when established, because the object 
is to prevent the laborers from lowering one another's wages by 
competition, and without uniformity in their wages competition 
would be inevitable. 

In this country, therefore, the creation of trade-unions and the 
settling of wages by collective bargaining at a uniform and com- 



44 Johns Hopkins University Circular [248 

pulsory rate are essential steps in the process of immediately ob- 
taining higher money wages. That uniform and compulsory rate 
is what we know as the standard rate. It may be assumed that 
the desire to increase their income is as strong among working- 
men as among men of other classes, and that they will adopt any 
lawful method calculated promptly to produce that result. Hence 
from the fact that the only method devised for that purpose in 
this country must lead to the establishment of standard rates of 
wages, we may infer that the desire for increased wages has been, 
as above stated, the chief motive for the adoption of those rates. 

The efficacy of the standard rate is equally evident in cases 
where it is desired, not to secure an immediate increase, but to 
prevent a reduction of wages. For this purpose, in the absence 
of legal enactment, it is no less clearly necessary to organize the . 
laborers, to put pressure on the employers, and fix the rate by 
collective bargaining. This rate also must be uniform, and its 
observance must be compelled by the trade -union ; in short, it 
must be ' ' standard. ' ' Thus it appears that, without the estab- 
lishment of a standard rate, the wages in any trade could not be 
immediately increased, nor their reduction be prevented, by 
means within control of the laborers. 

It is this which makes the fixing of such a rate one of the 
most important features in the policy of all trade-unions. They 
strive to attain one of their chief objects, which is to increase 
or maintain the wages of their members, by the same methods as 
are used by the trust in pursuing its analogous object, which is 
to raise or uphold the price of its wares. Both the trust and the 
trade-union seek to acquire, at least a partial, and if possible an 
entire monopoly. The more completely a trade-union controls 
all the available supply of labor, the more easily can it dictate 
the standard rate, or selling price, at which that labor shall be 
placed on the market. 

There is only one important difference between the methods of 
the strongly organized union and of the powerful trust. When 
the latter wishes to banish a rival from its territory, it floods the 
market with its own wares at reduced rates. But a strong union, 
when it wishes to drive out the non-unionist, or the rival union 



249] The Economic Seminary, 1903-1904. 45 

invading its territory, cannot afford to cut down its rate. Its 
weapon must still be the strike. Instead of trying to undersell 
its rivals, it leaves the standard rate undisturbed and withdraws 
its labor from the market, till the employer becomes willing to 
pay the standard rate rather than do without that labor. 



RICARDO'S THEORY OF VALUE. 

By Associate Professor Hollander. 

There are three clearly defined phases in Ricardo's treatment 
of value, corresponding here as throughout to the influences 
which shaped his mental history as an economist. The first 
extended from early acquaintance with systematic economic 
writing, through the bullion controversy, and might be described 
as a consisteDt exposition of Adam Smith's original concept of 
value. The second phase was incident to the corn-law discussions 
and to the debated policies associated therewith, and found 
expression in the chapter on value in the first edition of the 
1 ' Principles of Political Economy and Taxation " ; its key-note 
was theoretical warrant for the proposition that higher wages did 
not necessarily mean higher prices, and that a fall in wages was 
compatible with a rise in prices. The third phase consisted, in 
the main, of spirited controversy with friends and critics as to 
the adequacy or otherwise of labor as a measure of value, and 
was at its very height at the time of Ricardo's death. 

In inception, Ricardo' s theory of value probably dated back to 
early critical reading of the ''Wealth of Nations." It took 
definite shape in consistent correction of Adam Smith's exposition, 
and further analyses proceeded for a decade strictly within these 
lines. An acute student of the Ricardian economics has said 
that ' ' we are indebted to the Bullion controversy for the Ricardian 
theory of value. ' ' But this can be true only in the most general 
sense. The subject had become fairly clear in Ricardo's mind 
long before 1809, and the effect of subsequent currency discus- 



46 Johns Hopkins University Circular [250 

sions such as that growing out of Bosanquet' s assertion that years 
of scarcity and high taxation, and not excessive circulation, were 
the causes of the rise of prices — was, at most, clearer definition 
and further application of a theory of value and price then 
already well in mind, rather than independent formulation of a 
new theory. 

Ricardo' s concept of value, in its first or Smithian phase, was 
on the verge of change in 1815. Moreover in "An Essay on 
the Influence of a Low Price of Corn on the Profits of Stock, ' ' 
published in that year, the theory of value figured far less as a 
novel or basic doctrine requiring explicit assertion or detailed 
exposition, than as a restatement of a familiar principle cited 
merely to establish the proposition that with the progress of 
wealth the landlord might be expected to benefit not only "by 
obtaining an increased quantity of the produce of the land, but 
also by the increased exchangeable value of that quantity." 

The nearest approach to an exposition of this first phase of 
Ricardo's treatment of value to be found in his own writings is 
represented by pp. 1-12 of chapter 1 "On Value" in the first 
edition (1817) of the "Principles of Political Economy and 
Taxation. ' ' The chapter as published was undoubtedly composed 
at different times and under the dominance of different ideas, 
and it is not entirely fanciful to regard the formal break on 
page 12 as a line of stratification. 

The second phase of Ricardo' s treatment of value is directly 
traceable to the corn-law controversies of 1813-1817 and to 
spirited discussions thereafter with Malthus, McCulloch, Say 
and Torrens, as to related economic policies. The initial 
chapter "On Value" in the first edition (1817) of the 
1 ' Principles of Political Economy and Taxation ' ' was thus 
designed less as an independent exposition than as theoretical 
warrant for certain practical propositions advanced and defended 
by Ricardo from about 1813 on. Thus (a) Ricardo believed, in 
opposition to Malthus, that lower profits could only result, in the 
long run, from higher wages ; (b) he asserted that McCulloch' s 
proposal to scale down the interest on the national debt was 
neither just nor equitable, and (c) he refused all credence to the 



251] The Economic Seminary, 1903-1904. 47 

popular fear that the free importation of corn would be followed 
by a further disastrous fall in general prices. 

It was to give theoretical re-inforcement to such definite 
propositions that Ricardo developed and extended his original 
concept of value. The prime features of his modified exposition 
were disagreement with the doctrine that every rise in wages 
must necessarily be transferred to the price of commodities, and, 
second, demonstration of the converse dictum that higher wages 
were actually compatible with lower prices. 

Ricardo' s "Principles of Political Economy and Taxation" 
was published in the spring of 1817. As stated above, the 
treatment of value therein contained, was designed less as an 
independent exposition than as a warrant for the proposition that 
higher wages do not necessarily mean higher prices. But just as 
in the case of Mai thus' first statement of 'the principle of 
population' it was less the conclusion than the argument that 
w T as assailed. Ricardo found himself called upon not to establish 
any such paradox-like dictum as that prices sometimes fell as 
wages rose, but more fundamentally to vindicate 'embodied 
labor ' as the soundest theoretical and the best practical measure 
of value. 

This controversy, which constitutes the third phase of Ricardo' s 
theory of value, appears to have begun with the appearance of 
McCulloch's highly laudatory notice of Ricardo' s book in the 
Edinburgh Review for June, 1818. It was continued by Torrens' 
"Strictures," Malthus' "Political Economy" and "Measure 
of Value," Mill's "Elements," McCulloch's "Lectures," 
Ricardo' s successive editions of the ' ' Principles ' ' as well as his 
correspondence with Trower, Malthus and McCulloch, and was 
still in progress at the time of Ricardo' s sudden death in the 
summer of 1823. 



48 Johns Hopkins University Circular [252 

THE EVOLUTION OF EAILWAY BATES. 
By Logan G. McPherson. 

Kailroad transportation at the time of its introduction, as a 
matter of course, conformed to the laws which govern the 
entrance of any service or commodity into the market; that is, 
the early railroads were obliged to furnish transportation for a 
less price than existing agencies or to a greater degree of satisfac- 
tion, or both. 

That a lower rate for transportation was a controlling incentive 
to the adoption of the railroads as carriers is further manifest 
from that portion of the charter granted by the State of South 
Carolina to the historic road which was built from Camden. 
The principal means of land transportation theretofore had been 
by wagon along the pikes, and it was the general custom that the 
rate of transportation by wagon was 20 cents per cubic foot for 
light weight and $1.00 per 100 pounds for heavy articles per 100 
miles. The minimum charge was for 20 miles, because 20 miles 
was a day's work, and a less haul spoiled the day. A wagon had 
a capacity of 200 cubic feet and 4 horses could haul 4000 pounds 
or two tons; the minimum charge for 100 miles for the wagon 
load was therefore fixed at $40.00. 

The South Carolina charter permitting the construction of the 
Camden road provided that its charge should not exceed 10 cents 
per cubic foot for light articles and 50 cents per 100 pounds for 
heavy articles per 100 miles, thereby arbitrarily making the 
railroad tolls one-half the wagon tolls. The railroad accepted 
this dictum to mean generally that the railroad charge should be 
one-half the wagon charge and divided its territory into ten mile 
districts, one-half of the mileage for which wagons made a 
minimum charge and adjusted its rates per 100 pounds per 
10 miles. 

It will be perceived that this earliest railroad tariff in the 
United States was adjusted without any reference whatever to the 
cost of transportation, but was fixed before the means of 
transportation had come into existence. 



253] The Economic Seminary, 1903-1904. 49 

Very soon it was perceived that the distinction derived from 
wagon practice between light weight and heavy articles must be 
complicated by differences in the value of the commodities ; 
otherwise the railroad might be hauling a carload of material 
light in weight but great in value, at a much less revenue 
than it would derive from a carload of material, heavy in weight 
but low in value, a condition that would have little or no effect 
upon the volume of the more valuable material transported but 
would operate to materially decrease the volume of the less 
valuable. 

As the different short lines of railroads combined, some half 
dozen lines crossing the State of New York, forming the original 
New York Central K. R. and a number of lines in the State of 
Pennsylvania, forming the Pennsylvania Central, there was the 
beginning of the through rate which came to depend more and 
more upon rates by water-ways. It was naturally the desire of 
each railroad to obtain the largest possible share of traffic and it 
was prone to manipulate rates to this end. Different railroads 
terminating at different seaports were inclined to adopt rates that 
would draw traffic for export to these seaports. Thus began the 
war between the trunk lines that continued in one form or another 
often marked by violence and fury, for a generation. The early 
and ill-defined classification developed into a classification more 
clearly defined along the following lines : the rates made necessary 
by competition ; the volume of business ; the direction in which 
freight moved, including the point whether cars returned loaded 
or empty ; the value of the article ; the bulk and weight ; the 
degree of risk ; the special conditions, such as special equipment 
and special care en route. 

When competing roads were built throughout the West and 
Northwest, the competition for traffic in that territory became 
as violent as that engendered between the trunk lines, and the 
country passed through the era of rebates, of discriminations 
between shippers and localities, of high charges for local traffic 
while through rates were slaughtered, of underbilling, false 
classification and other stealthy devices by which railroads and 
shippers tried to hoodwink other railroads and other shippers. 



50 Johns Hopkins University Circular [254 

The result of all this was the formation of associations, of which 
that participated in by the trunk lines was the earliest, through 
which competing lines endeavored to come to an agreement as to 
competitive rates and the carrying of competitive traffic. 

These associations marked a decided advance in the evolution 
of a systematic adjustment of rates. For example ; instead of 
the railroads leading east from Chicago, and the roads leading 
east from St. Louis, each endeavoring to carry competitive 
business to the seaboard at rates lower than charged by the other, 
some effort was made to adjust the rates from these two centres so 
that each group of roads could carry a reasonable share of the 
traffic. The rate on grain from Chicago to New York, for 
example, could not exceed beyond a certain degree the rate at 
which grain could be shipped from Chicago via the Lakes and 
Erie Canal, and the rate from St. Louis was made 120 per cent, 
of the Chicago rate. 

As the development of transportation lines that traversed the 
different countries and the different oceans placed the products 
of the whole world in competition, another influence was brought 
to bear upon the rates of the American railroads. Continuing 
with grain as an example : The price of American wheat is fixed 
at Liverpool in competition with wheat from Southern Russia, 
from India and from the Argentine Republic. Out of the price 
per bushel at Liverpool, thus determined, the trans-atlantic 
steamers, the American railroads, the handlers and the farmers 
must each have a share. The rate which it is possible for rail- 
ways to obtain from the grain regions to the ocean, is therefore 
limited within a narrow range. 

In this, as in countless other instances, little if any attention 
is paid toward having the rate bear a definite relation to the cost 
of transportation. The rate that a railroad can charge for the 
transportation of a product depends upon the price at which that 
product can be marketed, upon the competition with water-ways 
and the competition of localities which the railroad serves with 
other localities ; that is, the rate is determined by what the 
traffic will bear. 

A railroad company had difficulty indeed in ascertaining what 



255] The Economic Seminary, 1903-1904. 51 

the cost of transportation of any particular commodity is. Even 
if there were no other expense than that for train movement, 
there is such variation in the volume of traffic in any one com- 
modity or in all commodities from year to year as well as 
variations in the conditions of operation, that the cost per ton 
per mile for carrying a certain commodity in one year, might 
not be the cost in a succeeding year. But in addition to the cost 
of train and engine movement, there is the charge for handling 
through stations, for maintenance of way, maintenance of equip- 
ment, tax, insurance and various fixed charges. 

It is necessary of course if a railroad maintain solvency, that 
its revenue exceed its expenses, and therefore (leaving out of 
consideration in this discussion other sources of revenue) that its 
freight charges applied to the volume of traffic must produce 
revenue exceeding these expenses for operation, for maintenance 
and for fixed charges, but it is the total of the revenue that 
must exceed this total of expense. To charge the same rate per 
ton per mile for each commodity as has been shown, would stunt 
certain traffic and destroy other traffic. A railroad company at 
the end of the year may be able to calculate what has been the 
average cost for moving one ton one mile though it is generally 
conceded, and is conceded by the Interstate Commerce Commis- 
sion that this cannot be done ; it may be able to ascertain what 
have been the average receipts per ton per mile for the different 
kinds of commodities, and in what proportion each commodity 
has contributed to the total revenue, and thus arrive at an 
approximate rate per ton per mile below which a particular 
commodity cannot be profitably moved. But this is subject to 
variation ; for example, if the grain movement to the seaboard 
be so great that solid trains can be run filled with grain, a profit 
can be obtained from a rate per ton much less than a rate that 
would be ruinous if the movement were not so heavy. 

While the total revenue must exceed the total expense, the 
adjustment of the rates that produce that revenue must be 
largely governed by what the traffic will bear ; that is, the 
adjustment must be that which will encourage the transportation 
of certain commodities at comparatively low rates and place a 



52 Johns Hopkins University Circular [256 

greater rate upon commodities that will not be affected by such 
a rate in the market. There are peculiar conditions for each 
commodity for each locality and these conditions change with 
each commodity and in each locality. ' ' What the traffic will 
bear" does not mean the placing of the highest possible rate 
upon every commodity, that policy of the ancient tax gatherers 
which tended to tax property out of existence, but that adjust- 
ment of rates which will develop the largest amount of traffic, 
and therefore that adjustment which will best serve the needs of 
the consumers of products. While the gross revenue of a rail- 
road company must exceed its expenses, the principle of ' * what 
the traffic will bear ' ' allows that revenue to be obtained in the 
way that gives a maximum of satisfaction to its patrons. 



LEGISLATIVE REGULATION OF THE OYSTER INDUSTRY 
IN MARYLAND. 

By M. O. Shrivek, Jr. 

Various bills dealing with the oyster question are introduced 
at every session of the General Assembly of Maryland ; of these 
nearly all fail of passage. This proposed legislation is of four 
kinds : 1. Local bills to regulate the catching of oysters in local 
waters ; 2. License laws ; 3. Bills to ''repeal and reenact with 
amendments ' ' the whole body of existing law ; 4. Planting bills. 
There is, of course, no hard and fast line drawn between these 
several divisions ; in very many cases bills of the first class over- 
lap the second, the second the third and vice versa. 

Bills of the first class deal with the right of common use in 
certain waters of the counties by the citizens thereof, or provide 
that in certain waters only specified modes of oystering shall be 
permitted. Instances of laws of this class are the right of use 
in common of the Nanticoke River by the citizens of Wicomico 
and Dorchester Counties, and prohibition of dredging in any but 
State waters. 

The number of license laws that are introduced every session 



257] The Economic Seminary, 1903-1904. 53 

is large though they are nearly all of local importance only. 
The third class is much less common ; indeed there have been 
only two or three in the last ten years. Such measures aim to 
establish an entirely new set of provisions regarding oyster 
seasons, modes of oystering, licenses, inter-county use of waters 
and planting. They usually contain the old ' * five acre pre- 
emption clauses" which have been a part of Maryland oyster 
legislation since 1830. Even this however is frequently changed, 
and the area to be preempted fluctuates from one to five acres, 
and from five back to one for little apparent reason. A feature 
of one of the bills that has much in its favor is a provision for 
spreading oyster shells over certain natural beds in the bay, and 
then proclaiming a closed season on such beds for two years. 

Of the fourth class there have been two kinds : (a) bills to 
incorporate an experimental oyster planting company ; (b) bills 
to establish and promote the oyster planting industry in Mary- 
land. Under the incorporation plan a company is to be estab- 
lished by the State, and given rights to two or three thousand 
acres of land, at a rental of one, or one and a quarter cents a 
bushel. The rental and the amount of land varies in different 
bills. The land is to be leased for a term of twenty years, to be 
renewed for twenty years. A bill of 1900 authorized leases for 
a thirty year term, renewable thereafter. The natural beds were 
excluded from the operation of the act ; but the corporation was 
to have exclusive rights in taking up two thousand acres. The 
Board of Public Works was to designate the land to be taken up 
for planting, and no creek less than one hundred yards wide at 
the mouth was to be taken up. In recent years the incorpora- 
tion scheme has been largely abandoned, because of the general 
outcry over the State that the oystermen would thereby be 
deprived of a livelihood and the industry monopolized. 

Proposed legislation to promote oyster planting has also under- 
gone many alterations. Chief among these is the reduction in 
the amount of land that each person is to be allowed to preempt. 
In addition to the provision that no firm, corporation, or joint- 
stock company could lease, the maximum permitted to private 
persons has been fixed at three hundred acres, and lately reduced 



54 Johns Hopkins University Circular [258 

to one hundred. The minimum is five acres in the inshore 
waters and ten in the deep or bay waters. This is to prevent too 
great complication in the records of the Shell Fish Commissioner, 
who is a new officer created by the act, with a proposed salary 
fixed variously from fifteen hundred to five thousand dollars and 
a term of office fixed at four years. It is strange that in the 
midst of the agitation against the leasing of the natural beds, 
two bills, one in 1894 and the other in 1902, were introduced 
providing that twelve months' peaceful occupation of a natural 
bed under a planting law constituted a valid title thereto. The 
laws all aim to keep the industry entirely in the hands of Mary- 
land citizens ; they provide that if any person transfer or attempt 
to transfer oyster land to a non-resident all title thereto shall 
cease, and become void. The Shell Fish Commissioner is to 
have maps of the barren bottoms of the bay prepared, and these 
areas are to be leased at what is deemed a just price within the 
limits of one to five dollars per acre. The Shell Fish Commis- 
sioner is also to decide all disputes that may arise between the 
lessees and others and is in general given large authority in 
everything pertaining to the industry. The design of the 
measure is to protect the planter and to give him full title to all 
oysters cultivated or found on his beds. The net revenues 
accruing are to form a "road fund" to be proportionately 
divided among the counties of the State, thus largely reducing 
taxation by giving the State a material income from what is at 
present an unproductive source. 



The Johns Hopkins University Studies in Historical 
and Political Science are now in the twenty-second volume. 
Price of the twenty-one series complete, bound in cloth, $63. 
A detailed list will be sent on application. 



The Financial History of Baltimore, 

By J. H. HOLLANDEK, Ph. D. 

Associate Professor of Finance in the Johns Hopkins University. 

400 pages. 8vo. Cloth, $2.00. 

The work is probably the first exhaustive study of the financial history of 
an American city. The author traces in detail the development of munici- 
pal expenditure, revenue, indebtedness and financial administration through 
the several periods of pre-corporate and corporate history. 



Finances and Administration of Providence, 

By HOWARD K. STOKES, 

464 pases. 8vo. Cloth. Price, $3.50 

Regarding Providence as a typical modern American city, Dr. Stokes 
traces in outline the social and economic forces underlying the present struc- 
tures of local government during the first one hundred and fifty years of the 
city' s history ; and during the last fifty years, sets forth the effects of per- 
sonal, political, or corporation motives upon the development of the 
administration, and the income and outgo of the city in more complete detail. 



THE AMERICAN WORKMAN, 

By Professor E. LEVASSEUR. 

AN AMERICAN TRANSLATION BY THOMAS S. ADAMS 

EDITED BY 

THEODORE MARBURG. 
540 pages. Octavo. Cloth. Price, $3.00. 

A TRIAL BIBLIOGRAPHY OF AMERICAN 
TRADE=UNION PUBLICATIONS. 

Prepared by the Economic Seminary of the Johns Hopkins University 

AND EDITED 

By Dr. G. E. BARNETT. 

112 pages. Octavo. Paper. 50 cents. 

(Nos. 1-2 of Johns Hopkins University Studies in Historical and Political 
Science, Vol. xxii, 1904. ) 

Orders should be addressed to 

The Johns Hopkins Press, 

Baltimore, Maryland. 



A REPRINT OF ECONOMIC TRACTS. 

(SECOND SERIES.) 



In consequence of the favorable reception accorded the reprint 
of four economic tracts of the nineteenth century in 1903-4, the 
Johns Hopkins Press invites subscriptions to a similar reprint of 
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issued consecutively under the editorial direction of J. H. Hol- 
lander, Ph. D., Associate Professor of Political Economy in the 
Johns Hopkins University. 

The series will consist of the following tracts : 

(1). A Discourse op Trade. By Nicholas Barbon. 

London, 1690. 
(2). Several Assertions Proved. By John Asgill. 

London, 1696. 
(3). Discourses upon Trade. By Dudley North. 

London, 1691. 
(4). England's Interest Considered. By Samuel 
Fortrey. Cambridge, 1663. 
Each tract will be supplied with a brief introductory note and 
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The edition will be limited to five hundred copies. With a 
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(2). An Inquiry into the Nature and Progress of Rent. By 

T. R. Malthus, 1815. 
(3). Essay on the Application of Capital to Land. By Sir 

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(4). A Refutation of the Wage-Fund Theory. By Francis 
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7 ec 



THE 

JOHNS HOPKINS 
UNIVEESITY CIKCULAB 



THE 

ECONOMIC SEMINARY 
1904-05 



Baltimore, Maryland 

Published by the University 

Issued Monthly from October to July 



[New Series, 1905, No. 6.] 
[Whole Number 179.] 

Entered, October 21, 1903, at Baltimore, Md., as second class matter, under 
Act of Congress of July 16, 1894. 

Ilkftfe Sirir Mm! JMou 5«wj 



JOHNS HOPKINS UNIVERSITY CIRCULAR, No. U9 

JUNE, 1 9 O 5 
CONTENTS 

TAGK 

The Economic Seminary, 1904-05 : 

The Origin of the Constitution of the Typographical Union. By 

' G. E. Barnett, 3 

Disability Insurance in the Railway Brotherhoods. By J. B. 

Kennedy, 6 

Adjustment of Wages in the Foundry Trade. By F. W. Hil- 

bert, 11 

National Trade Councils. By William Kirk, - - - 14 

Machinery in the Stone Cutting Industry. By S. Blum, - - 18 

The Unit of Government, in the Meat Cutters' and Butchers' 

Union. By T. W. Glocker, 21 

The Minimum Wage in the Machinists' Union. By W. H. 

Buckler, 25 

The Apprenticeship Ratio in the Iron Molding Industry. By 

J. M. Motley, - - - - 28 

The Boot and Shoeworkers' Union Stamp. By G. A. Bagge, 32 

The. Collection of Trade Union Revenue. By A. M. Sakolskt, 37 

History and Theory of Insurance. By C. C. Hall, - - 40 



THE 

JOHNS HOPKINS 
UNIVERSITY CIRCULAR 

New Series, 1905, No. 6 JUNE, 1905 Whole Number, 179. 

THE ECONOMIC SEMINARY, 1904-1905, 

EDITED BY 

Professor J. H. Hollander and Dr. G. E. Barnett. 



The Economic Seminary has continued its investigation into 
the history, activities and influence of labor organizations in the 
United States during the current academic year. Its member- 
ship has been narrowly limited to advanced students preparing 
for a scientific career in economic study, and its primary design 
has been the development of sound method in economic research. 
The regular fortnightly evening sessions have been supplemented 
by briefer morning sessions in alternate weeks. The material 
resources necessary for the inquiry have been supplied by the 
continued generosity of the citizen of Baltimore, whose original 
gift made its inception possible. 

Appreciable progress has also been made by individual mem- 
bers of the Seminary in the study of specific aspects of the several 
questions assigned for investigation. During the summer, field 
work was carried on in various carefully selected localities, and 
the data thus collected have since been supplemented and cor- 
rected by documentary study and personal interview. Certain 
preliminary studies were completed and published in dignified 
form, and two senior members of the Seminary submitted mono- 
graphic studies of the particular subjects on which they have been 
engaged, in part fulfillment of the requirements for the doctor 



Johns Hopkins University Circular 



[542 



of philosophy degree. These will appear in the twenty-third 
series of the Johns Hopkins Studies in Historical and Political 
Science. Early in the next academic year a cooperative volume 
of ' ' Essays in American Trade Unionism ' ' will also be issued by 
the Seminary, embodying the preliminary results of the various 
investigations now in progress and ultimately designed for mono- 
graphic publication. 

The record of the proceedings of the Seminary, and abstracts 
of certain papers there presented, are appended : 



October 



October 11. 



October 
October 


17. 

26. 


November 


2. 


November 


8. 


November 16. 


November 22. 
November 29. 


December 
December 


7. 
13. 


December 21. 
January 11. 


January 


17. 


January 


25. 


January 
February 


31. 

8. 


February 


14. 



Report of the summer's field work, by Professor Hollan- 
der, Dr. Barnett, Messrs. Kirk, Motley, Hilbert, 
Glocker, Kennedy, and Blum. 

" Trade Union Agreements in the Iron Molders' Union," 
by F. W. Hilbert. 

Report on the summer's field work, by W. H. Buckler. 

"Functions of the Knights of Labor and the American 
Federation of Labor," by Wm. Kirk. 

" Finances of the Iron Molders' Union," by A. M. Sakol- 

SKI. 

' ' Collective Bargaining in the International Typographical 

Union," by Dr. George E. Barnett. 
' ' The Apprentice in the Building Trades, " by J. M. 

Motley. 
"Shop Eules in the Building Trades," by S. Blum. 
"School Taxation in the Indian Territory," by Professor 

Hollander. 
"Shop Rules in the Building Trades," by S. Blum. 
"Recent Court Decisions Affecting Labor Unions," by L. 

M. R. Willis. 
"The Open Shop," by Dr. George E. Barnett. 
"The Structure of the Iron Molders' Union," by T. W. 

Glocker. 
"The Maryland Workmen's Compensation Act," by Dr. 

George E. Barnett. 
"The Meeting of the Economic Association at Chicago," 

by Professor Hollander. 
' ' The Beneficiary Features of the Railway Unions, " by J. 

B. Kennedy. 
"Reform Movements in Baltimore," by S. Blum. 
"The Functions of the Allied Trades Council," by Wm. 

Kirk. 
"A Sketch of David Ricardo," by Professor Hollander. 



543] The Economic Seminary, 1904-1905 3 

February 24. ' ' The Development of Apprentice Laws in American Labor 

Unions," by J. M. Motley. 
February 28. ' ' The Origin of the Constitution of the International Typo- 
graphical Union," by Dr. George E. Barnett. 
March 8. "The Standard Wage in the Machinists' Union," by W. 

H. Buckler. 
March 22. " Beneficiary Expenditures of American Trade Unions," 

by A. M. Sakolski. 
March 29. " Statistical Methods," by Hon. Charles P. Neill, U. S. 

Commissioner of Labor. 
April 4. "The Government of General Federations of Labor," by 

Wm. Kirk. 
April 11. n The Union Stamp of the Boot and Shoe Workers' Union," 

by G. A. Bagge. 
1 ' Cunnynghame's Geometrical Political Economy," by Dr. 

T. H. Taliaferro. 
April 18. "The Administration of Trade Union Finances," by A. M. 

Sakolski. 
May 2. "The Bise of the National Union," by T. W. Glocker. 

"The Baltimore Municipal Loans," by S. Blum. 
"The Recent Nine Hour Decision of the Supreme Court," 

by F. W. Hilbert. 
May 9. ' ' The Trade Union Agreements in the Building Trades, ' ' 

by F. W. Hilbert. 
May 16. "Trade Union Rules for Maintaining the Standard Rate," 

by S. Blum. 
May 23. "Beneficiary Features of the Iron Molders' Union," by J. 

B. Kennedy. 



THE ORIGIN OF THE CONSTITUTION OF THE 
TYPOGRAPHICAL UNION. 

By Dr. George E. Barnett. 

As early as 1836, an attempt was made to unite the typo- 
graphical societies in the United States in a national organization. 
At a national typographical convention held in Washington, 
November 7-11, 1836, a constitution was framed and submitted 
to the various societies. In 1837, this constitution was amended 
in minor details and the National Typographical Association 
formed. The Association, however, apparently died at its birth. 



4 Johns Hopkins University Circular [544 

In 1850, a call for a national convention was issued by the New 
York, Boston, and Philadelphia Typographical Unions and on 
December 2, 1850, a "National Convention of Journeymen 
Printers" met in New York with delegates present from six 
unions located in five states. Desirous of securing a fuller 
representation before taking decisive action, the convention ad- 
journed for a year without drawing up a constitution. At the 
convention held in Baltimore in 1851, ten unions in seven states 
were represented and the convention proceeded to the formula- 
tion of a constitution for the proposed national organization. 
For this purpose a committee of seven was appointed. The 
committee finished its labors in one day and the constitution 
submitted was adopted by the convention with only a few unim- 
portant changes. 

The constitution thus adopted was probably the earliest con- 
stitution of a national American trade union. It remained 
unchanged even in many minor features until 1885, and its 
main outlines are still perceptible in the present constitution of 
the International Typographical Union. As other trades formed 
national unions, the constitution of the printers was studied 
closely and to a considerable extent imitated. It is consequently 
a matter of some interest to determine the source of the constitu- 
tion of 1851. 

The committee which drew up the constitution of the Typo- 
graphical Union borrowed almost without change, except for 
unimportant omissions, the constitution of the Right Worthy 
Grand Lodge of the Independent Order of Odd Fellows of the 
United States of America. No mention of this fact was made 
in the report of the committee, but a comparison of the two 
constitutions reveals such striking similarities, both verbal and 
general, that the connection between them can be clearly estab- 
lished. A single clause, taken almost at random, will illustrate 
their similarity. Article IV of the Constitution of the Grand 
Lodge of the Odd Fellows read in 1851 as follows : 

1 ' The Grand Sire shall preside at all meetings of the Grand 
Lodge, preserve order, and enforce the laws thereof. He shall 
have the casting vote whenever the Lodge shall be equally 



545] The Economic Seminary, 1904-1905 5 

divided ; but shall not vote on any other occasion. During the 
recess of this Grand Lodge he shall have a general superintend- 
ence of the interests of the Order and make a report to the next 
stated meeting of his acts and doings in relation thereto. He 
shall not hold any elective office in any state, district, or terri- 
torial Grand Lodge or Grand Encampment, while acting as 
Grand Sire." 

Sec. 1, Art. IV of the Constitution of the National Typo- 
graphical Union as originally adopted read as follows : 

1 ' The President shall preside at the meetings of the National 
Union, preserve order, and enforce the laws thereof. He shall 
have the casting vote whenever the National Union shall be 
equally divided ; but shall not vote at other times. During the 
recess of this National Union, he shall in conjunction with 
the Vice-presidents have a general superintendence over the 
interests of the craft ; and make report immediately upon the 
assembling of the National Union of his acts and doings in 
relation thereto. He shall not hold any office in a Subordinate 
Union while acting as President of this National Union." 

All other parts of the two constitutions show the same simi- 
larity. The seventeen articles of the Odd Fellows' constitution 
were condensed into ten, but the changes made were almost 
without exception unimportant. Even in a matter so vital to a 
new organization as taxation the committee submitted to the 
convention a provision exactly like that in the constitution of 
the Grand Lodge of the Odd Fellows, viz. that the subordinate 
bodies should pay ten per cent, of their receipts to the national 
body. The convention reduced the percentage to five but 
retained the basis of taxation. The constitution as originally 
submitted provided for State Unions to correspond to the state 
Grand Lodges of the Odd Fellows, but the non-existence of any 
such bodies led the convention to make the local unions the 
constituent elements in the National Union. 

The distinctive characteristic in the structure, thus constitu- 
tionally outlined, was the predominance given a representative 
body known in the one case as the Grand Lodge and in the other 
as the National Union. This body possessed "exclusive juris- 
diction, ' ' it was made the ' ' ultimate tribunal to which all matters 



6 Johns Hopkins University Circular . [546 

of general importance . . . shall be referred, ' ' and its ' ' decisions 
thereon" were to be "final and conclusive. ' ' It elected all 
officers, passed all laws and decided all judicial questions. Legis- 
lative, judicial and executive powers were thus combined in one 
body. 

The general plan of the constitution of the Grand Lodge of 
the Odd Fellows fitted in well with the vague aims of the founders 
of the Typographical Union. The Odd Fellows have always 
had a highly decentralized form of government. The central 
organization designed by the Typographical Convention of 1851 
was not intended to be other than legislative and judicial. The 
powers which it was believed such a body could beneficially 
exercise were very largely such as were exercised by the Grand 
Lodge of the Odd Fellows. It was not supposed that the 
cooperation of the local unions would go very far. A govern- 
ment by a kind of supreme council consequently answered every 
purpose. The regulation of the movements of members from 
the jurisdiction of one local to that of another was for many 
years the chief function of the Typographical Union. 

When at a later time the functions of the national union 
expanded, the old form of government proved itself unsuited 
to the new conditions. For twenty years enterprising spirits 
among the printers urged the reorganization of the National 
Union but the old constitution held strongly and even at the 
present time gives distinctive form to the government of the 
Union. The large place occupied in the government of the 
Typographical Union by the convention is a historical survival 
of the earliest stage in the formation of national unions in the 
United States. 



DISABILITY INSURANCE IN THE KAILWAY 
BROTHERHOODS. 

By J. B. Kennedy. 

The distinctive characteristic of the insurance features of 
railway organizations has been the placing of disability insurance 
on an equality with death insurance. The fact that railway 



547] The Economic Seminary, 1904-1905 7 

employees are specially exposed to the risk of disabling accidents 
has been the chief influence in this direction. The large number 
of claims paid for disability in the Conductors' and the Firemen' s 
beneficiary departments during recent years shows the high im- 
portance of disability insurance to the men engaged in the more 
hazardous occupations. 

The disability claims paid among the Firemen for the eleven 
years from 1894 to 1904 were 24.5 per cent, of the total number 
of claims paid, about one-third of the number of death claims 
paid. Among the Conductors the disability claims paid during 
the same period, amounted to one-seventh of the death claims 
paid. 

The percentage of disability claims has gradually decreased in 
each of these organizations for some years. The disability claims 
paid by the Conductors in 1894 were 15.6 per cent, of the total 
number of claims paid, and at the close of 1904, 11.8 per cent. ; 
while among the Firemen the percentages for the biennial terms 
1894-1896 and 1902-1904 were 32.9 percent, and 21.4 per 
cent, respectively. The number of disability claims per 1000 of 
the total membership furnishes a better basis of comparison. In 
the biennial terms 1894-1896 and 1902-1904 the disability 
claims paid by the Firemen were respectively 6 and 4.3 per 
1000 of the total membership. This decrease is due partly to 
greater efficiency in the administration of the disability insurance 
laws and partly to improved conditions under which the duties of 
conductor and fireman are performed. 

The old line companies do not offer the form of disability 
insurance required by railway employees. These companies 
issue accident policies against death and total or partial disa- 
bility from accident while on duty, but there are two defects in 
the form of this insurance. In the first place, the definition of 
total disability adopted by the companies is much stricter than 
that of the insurance departments of the railway brotherhoods. 
A typical insurance company definition of total disability is 
incapacity from "prosecuting any and every kind of business 
pertaining to a regular occupation from the loss of both eyes, 
both hands, both feet, or one hand and one foot" ; while partial 



8 Johns Hopkins University Circular [548 

disability is ' ' the loss of one hand or one foot or any injury pre- 
venting the performance of one or more important daily duties 
pertaining to a regular occupation." In other words, to secure 
the indemnity for total disability, the insured must be disabled 
from performing any regular labor whatever. In the railway 
organizations total disability is usually defined to mean inability 
of the insured to continue in his position and has no reference to 
general disability. Secondly, the disability insurance offered by 
the companies is joined with accident insurance affording a 
weekly indemnity during the period of illness due to accident. 
The railway employee, if he insures against totally disabling 
accidents, must also insure against temporarily disabling acci- 
dents, since the companies do not separate the two forms of 
insurance. The covering of all accidents in one policy necessi- 
tates a heavy premium. For example, for an engineer to secure 
accident insurance including besides weekly indemnity of $20, 
provision for the payment of $1000 in case of death or total 
disability resulting from accidents he must pay an annual pre- 
mium of $50.40 or $56.00 according to the section of the country 
over which he runs or the system by which he is employed. 
The combination of life with disability insurance meets the 
needs of the ordinary railway employee better than any other 
combination. 

The formative period of the two older organizations furnished 
opportunities for a study of the disability benefit and showed its 
usefulness in strengthening the national unions. These organi- 
zations, however, experienced grave difficulties in their attempts 
to administer disability insurance. The Engineers included 
' ' totally disabled members ' ' among the beneficiaries of the fund 
provided for in 1866. The by-laws of the insurance association 
founded by the Brotherhood on December 3, 1867, provided for 
assessments of 50 cents per member for the benefit of each totally 
disabled member — one-half the amount assessed in case of death. 
The history of this benefit was tersely summed up by General 
Secretary-Treasurer Abbott in his address to the Engineers' As- 
sociation, December 3, 1871 : "The Baltimore convention, 
1869, adopted a disability clause, the Nashville, Tenn., conven- 



549] The Economic Seminary, 1904-1905 9 

tion, 1870, amended it, and the Toronto, Canada, convention, 
1871, repealed it." At St. Louis, 1872, the Brotherhood 
formed a separate association, known as the " Total Disability 
Insurance Association," for furnishing insurance against disa- 
bility to members. An entrance fee of $2.00 was required and 
the assessment was fixed at $1.00. In 1876 the convention 
dissolved the total disability insurance association and the Engi- 
neers did not succeed in establishing a satisfactory system of 
disability insurance, until 1884 when the prosperous condition 
of the Insurance Association enabled the convention to carry 
out its long cherished plan and to make provision for the pay- 
ment of the same benefit in cases of total disability as at death. 
In the call of the Conductors for a convention to effect a per- 
manent organization issued, November, 1868, the purpose of the 
proposed Order was stated to be the protection of ' ' the members 
and their families in case of sickness, accident, or death. ' ' The 
Mutual Insurance Association instituted by the first convention 
paid a disability benefit equal to the death benefit. The law 
under which the Association operated was repealed at the second 
convention, October, 1869, but when the third convention, 
October, 1870, adopted a new insurance plan, it was provided 
that disability insurance was to be paid in an amount equal to 
that paid in case of death. Not until 1881, did the Conductors 
satisfactorily solve the problem. 

The difficulties experienced by the Engineers and the Con- 
ductors in establishing disability insurance without doubt served 
to deter the Firemen from adopting disability insurance until 
their fifth convention, 1878. During the period, 1868-1880, 
the disability benefit was in process of evolution. By 1880 the 
three older organizations had demonstrated the possibility of 
maintaining the benefit and since that time it has been regarded 
as an essential element in railway insurance systems. Hence the 
Trainmen in 1883, the Telegraphers in 1887, and the Switchmen 
in 1886 in their first constitutions and the Trackmen in 1893 
made the disability insurance equal to that paid in case of death. 
All of the railway organizations, except the Telegraphers, follow 
this policy at the present time. Since 1897, the Telegraphers 



10 Johns Hopkins University Circular [550 

have not paid a disability benefit. They provide, however, that 
should a member become totally or permanently disabled, the 
insurance committee may order his assessments paid and shall 
deduct the amount of these assessments when the benefit is finally 
paid. The failure of the Telegraphers to pay a disability benefit 
is largely due to the fact that their occupation is less dangerous 
than other forms of railway service. 

The principal obstacles to the successful operation of disability 
insurance have been the difficulties experienced in its adminis- 
tration — largely on account of the impracticability of defining 
closely permanent or total disability. With almost every revision 
of the constitutions changes were made in the definition of the 
term ' ' disability. ' ' Strict construction of the law by the 
executive officials led to dissatisfaction and often to appeals from 
their decisions to the insurance committees or to the boards of 
trustees. During the early years disability claims were often 
presented through subordinate officials, who were unable to inter- 
pret aright the laws or were unwilling to assume the responsibility 
of pronouncing the claims illegal. Consequently the disability 
laws were not successfully carried out until the subordinate officers 
were educated to their duties and responsibilities, and until more 
satisfactory definitions of permanent or total disability were 
adopted. The Engineers, after a period of thirty-two years, in 
1898 adopted a satisfactory definition of total disability : " Any 
member of this Association losing by amputation a hand at or 
above the wrist joint ; a foot at or above the ankle joint ; or 
sustaining the total and permanent loss of sight in one eye or 
both eyes, shall receive the full amount of his insurance." 
Similar definitions of disability have been worked out by the 
other railway organizations. The Conductors add to this ' ' total 
loss of the sense of hearing." The Switchmen include "the 
loss of four fingers of one hand, at or above the second joint ; or 
of three fingers and thumb of one hand, at or above the second 
joint." Under these laws, the brotherhoods are able successfully 
to pay disability insurance. 



551] The Economic Seminary, 1904—1905 11 

ADJUSTMENT OF WAGES IN THE FOUNDRY TRADE. 
By F. W. Hilbert. 

During the early years of the Iron Molders' Union piece-work 
was the rule in stove molding only ; but as the work of the 
machinery foundries increased and a larger number of pieces of 
each pattern were molded, piece-work became more common. 
There was great diversity, however, in the price paid for the 
same or similar pieces in different localities as well as little 
uniformity in the wages paid by the day. As early as 1863 a 
committee was appointed by the Iron Molders' Union to gather 
statistics of wages, and in 1866 the unions in Troy and Cincin- 
nati issued price lists giving the prices paid in those cities for 
stove and hollow-ware molding. The president of the Union 
recommended that the example be followed in other cities ; but 
apparently without result, as in 1880 he again complained that 
want of thorough knowledge of prices in the several localities 
was the main trouble in maintaining wages. Employers claimed 
to know such prices and the molders were unable to meet them 
with indisputable facts. The president urged that ' ' details be 
studied, guess work abolished, and absolute certainty on any 
and every point in the trade connected with wages and prices 
should take the places of their usual haphazard way of doing 
business. ' ' It was not, however, until the Stove Founders' 
Defense Association was formed and annual conferences with the 
Iron Molders inaugurated in 1891, that uniformity in the pay for 
piece-work was secured to any considerable degree in the stove 
trade. By 1892 prices were practically uniform and those then 
prevailing became the basis for settling prices on new work. 

Piece prices in the stove trade have not been cut down in the 
manner complained of by the workmen in other trades. The 
Defense Association conceded that where prices of work were set 
according to well established precedents and rules of conferences 
agreements they should remain unchanged. Improved methods 
have, however, in some cases reduced these prices, and at the 
1892 conference between the Molders and the Defense Association 



12 Johns Hopkins University Circular [552 

a resolution was adopted that, ' ' Whenever by improved appliances, 
new or different methods, or superior facilities introduced by the 
manufacturers an increase in the quantity of work produced can 
be made, the price of molding may be decreased proportionally, 
provided the new price shall not reduce the average wages of the 
molder who makes it." 

In the conference of 1893, the Iron Molders made a formal 
demand for fifteen per cent, increase in prices, but the represen- 
tatives of the Defense Association were able to show that the 
general conditions of trade were such that the selling prices of 
stoves could not be increased. The representatives of the Iron 
Molders said in their report to the Union : "In the presentation 
of their ( the employers' ) case in this phase of their inability to 
comply immediately with our request for the advance of fifteen 
per cent, on present prices of molding, they had greatly the 
advantage of the union's committee in the exact figures they 
brought to substantiate their propositions." The officers of 
the Union began thereafter to tabulate systematically the prices 
paid in every shop in which its members worked, as well as other 
statistics relating to foundry work. At all subsequent con- 
ferences, the representatives of the Union have been nearly, if 
not quite, as well informed as the representatives of the Defense 
Association. 

From 1892 to 1899 wages were not reduced, notwithstanding 
the severe depression during that period. In 1895, the Defense 
Association gave the thirty days' notice of a reduction, required 
by the agreement, but after a thorough discussion it was decided 
not to disturb the prices paid for stove plate molding provided 
the Union was successful in resisting the reductions which certain 
employers, who were not members of the Association, had given 
notice that they would make. The president of the Union 
reported that in three instances the molders had to be withdrawn 
from stove foundries in order to resist reductions, the acceptance 
of which would have constituted a violation of the agreement. 
The first increase in wages was granted by the conference in 1899. 
The Molders asked for a fifteen per cent, advance, and the 
Defense Association offered ten per cent, which was accepted by 



553] The Economic Seminary, 1904-1905 13 

the Molders. The most important employers outside of the As- 
sociation at once gave the advance and all others were soon 
forced to follow the same course. In 1900 an advance of five 
per cent, was made and it was shown to the satisfaction of the 
representatives of the Molders that a greater increase at that 
time would raise the selling price of cast iron stoves so high that 
steel stoves and cheap stoves of sheet iron would be substituted. 
Another advance of five per cent, was made in 1902, and the 
stove manufacturers outside of the Association granted the same 
increase. The conference practically fixes wages in the whole 
trade of stove manufacturing. 

The formation of a general wage scale between the Molders' 
Union and the National Founders' Association, composed of 
manufacturers of all kinds of castings, has not been so easily 
accomplished. As a preliminary, the Founders' Association 
classified its membership, and took a census of wages paid in 
foundries all over the country, intending to take the average as 
a basis for a minimum. The Iron Molders, however, objected 
to this plan on the ground that this systematic way of arriving at 
a minimum could only be acceptable if every locality which 
entered into the computation were upon a reasonably fair wage 
basis and under the control of the two organizations involved. 
The Founders' Association further contended for differentials 
between bench molders and floor molders, and between small 
communities and large cities. The Molders were entirely opposed 
to the latter half of the proposition, claiming that the same work 
should receive the same pay throughout the country, as in the 
case of stove molding ; they were, however, willing to permit 
some difference to be made in the pay of different classes of 
molders, as some of the local agreements provide for such a 
differential, and others for a differential in the case of aged 
molders and journeymen just out of their apprenticeship and 
unable to earn the minimum wage. 

The discussion continued without result during several annual 
conferences. In the meantime, the Union endeavored to put 
every district upon a so-called equitable basis as to wages, and 
both time and money have been spent in connection with this 



14 Johns Hopkins University Circular [554 

leveling-up process. In 1899 the Molders, influenced largely by 
the ten per cent, increase granted by the Defense Association, 
demanded and received the same or a greater increase, from the 
machinery founders in nearly all the foundry centres. They 
then demanded sufficient increases in many of the outlying com- 
petitive localities to equal the new rates in the centres. All these 
changes were made by local agreements for one year. At the 
expiration of these agreements a further increase of twenty-five 
cents a day was sought in several of the larger cities where the 
molders were especially strong. The matter was referred to 
the conference committee, but after numerous sessions extending 
over a period of two months, the committee failed to agree upon 
a permanent rate, and each side was left to its own course. A 
test of strength centering in Cleveland followed, and resulted in 
a compromise. The contest emphasized the difficulty of forcing 
up a local rate of wages to make another local rate general. 

The advantage of having a general standard wage, however, 
was not forgotten and in the 1903 conference the Founders 
changed the form of their proposition by suggesting an agree- 
ment under which the founder could pay any of his men as much 
over the standard as he saw fit, but would be privileged to 
employ forty per cent, of his entire force of molders at ten per 
cent, less than the standard rate which might be agreed upon. 
The Union, however, considered such a differential liable to 
abuse, and refused to recede from its demand for a minimum 
below which no molder should be paid but above which the 
employer should have a free hand. At this point the question 
of a standard wage now rests. No middle ground has yet been 
found upon which both parties are willing to stand. 



NATIONAL TEADE COUNCILS. 

By "William Kirk. 

Federations of related trades or trade councils appeared in the 
United States at a later period than general federations. The 
International Building Trades Council organized in 1897 was 



555] The Economic Seminary, 1904-1905 15 

the first successful attempt to federate on a national scale various 
more or less closely related trades in a single industry. More 
recently two other national trade councils have been formed : 
the Metal Trades Federation whose constitution was adopted in 
January, 1903, and the Structural Building Trades AUiance, 
which held its first convention in August, 1904. In addition 
to the building trades and metal trades councils, there are 
printing trades councils in various places ; but these organi- 
zations have remained local in character. 

The International Building Trades Council, resembling to 
some extent the Metal Trades Federation and the Structural 
Building Trades Alliance, differs from them in one important 
particular. The first is primarily an alliance of local building 
trades councils, whereas the Metal Trades Federation and the 
Structural Building Trades Alliance are federations of national 
trade unions. Thus the preamble to the constitution of the 
International Building Trades Council declares local trades 
councils to be ( * the most fruitful means presented to improve 
the condition of the men engaged in the building industry." 
Each local couucil is entitled to one delegate in the national 
convention for each trade represented in the local council, but 
no delegate is entitled to more than one vote. National trade 
unions, and local unions of a trade having no national organ- 
ization, are limited to one vote. To secure adequate represen- 
tation, therefore, it is necessary for national unions to have their 
locals affiliated with local councils. Although the constitutions 
of the other allied trade federations provide for local councils of 
metal trades and building trades respectively, representation in 
the national convention is primarily of national and international 
unions. 

When the convention is not in session, the direction of affairs 
rests with the general officers, consisting of a president, a vice- 
president or vice-presidents, — one in the Metal Trades Feder- 
ation, six in the International Building Trades Council, and one 
for each affiliated national or international organization in the 
Structural Building Trades Alliance, — a secretary-treasurer, and 
finally an executive board, or board of governors, including the 



16 Johns Hopkins University Circular [556 

general officers of the International Building Trades Council 
with the exception of the general secretary- treasurer and the 
executive officer of each national and international union in the 
Metal Trades Federation and the Structural Building Trades 
Alliance. 

The most important activities of these federations are displayed 
in the power exercised in such typical fields as (a) jurisdiction 
disputes, (b) general conditions of work, (c) general or sympa- 
thetic strikes. 

(a) Jurisdiction disputes between trades, due largely to the 
introduction of men and improved machinery where old trade 
boundaries are fading away and new ones appearing, are partly 
responsible for the formation of allied trade federations: The 
problem in administration has been to grant sufficient authority 
to the central executive for the settlement of trade disputes, and 
at the same time to preserve the complete autonomy of the affili- 
ated unions. Thus the International Building Trades Council 
declares that it has ' ' no authority to interfere with the trade 
regulations of any local building trades council ' ' unless one local 
council interferes with the jurisdiction of another council. All 
appeals and grievances are submitted to the general executive 
board whose decision is final on all questions until the following 
convention. Similarly in the Structural Building Trades Alli- 
ance, final authority in trade disputes rests with the board of 
governors, or with the national convention if it is in session. 

To prevent as far as possible the recurrence of internal conflict, 
the plan requiring the submission of a jurisdiction statement has 
been adopted. In the building trades, for example, each organi- 
zation affiliated or desiring affiliation in a building trades council 
is required to make a detailed statement defining the class of 
work claimed by the trade. If the claim of a union seeking 
membership interferes with another trade in the council, and 
cannot be satisfactorily settled by the executive board, the appli- 
cation for a charter is rejected. 

(b) National trade councils are active in improving general 
working conditions of those trades represented in the industry. 
Among the more important objects of the councils are the secur- 



557] The Economic Seminary, 1904-1905 17 

ing of the eight hour day, the use of the union label, the enforce- 
ment of the use of the working card, and the introduction of 
arbitration. 

The shorter work day figures prominently in all present activity, 
and is a special aim of the International Building Trades Council. 
The label as a trade device has been used effectively by allied 
printing trade councils and the metal trades, and to some extent 
by the allied building trades. Owing to the peculiar nature of 
the building industry, a general label was considered at first to 
be impracticable. Later the demand arose for a building trades 
label, and the fourth convention, 1901, of the National Council 
adopted a design to be used on buildings erected entirely by 
union labor. This label has since been placed on stores, dwel- 
lings, and office buildings in several large cities. 

The working card may also be regarded as an important factor 
in the improvement of labor conditions. Thus the constitution 
for local councils affiliated with the International Building Trades 
Council declares ' ' It shall be the duty of the council to encourage 
agreements with reliable contractors which will guarantee the 
employment only of mechanics and laborers in possession of the 
current quarterly working card of the National Council. ' ' When 
the working card is in this way made a condition of work, the 
claim is advanced that it strengthens the union or council and 
serves as a prompt collector of dues. No member who is in 
arrears above a certain amount is in good standing or entitled to 
work under the agreement. The card -of a painter for example 
does not allow him to work on a building unless he has, in addi- 
tion to his own trade union card, the card of the National Coun- 
cil, and he cannot obtain the latter unless he has the former. 
Finally, the arbitration of all differences receives considerable 
attention from allied trade federations. Local and national con- 
ferences with employers are held whenever possible, and every 
effort is put forth to uphold trade agreements and avoid strikes. 

(c) Federations of related trades have little to do with local 
or national trade strikes, but they do not hesitate to inaugurate 
general or sympathetic strikes whenever conferences with employ- 
ers fail to settle important questions. The advocates of trade 



18 Johns Hopkins University Circular [558 

councils argue that the employer has little to fear from trade 
organizations acting independently, for some unions will remain 
at work while others in the same industry are on strike. On the 
other hand, general or sympathetic strikes, involving all trades in 
a given industry, seriously cripple the employer. The usual 
steps leading to an allied trade strike are as follows : A local 
union desiring the support of affiliated unions submits a state- 
ment of its grievance to the local council. The executive board 
of the council, or in some cases the board of business agents, 
composed of paid representatives of the different unions, en- 
deavors to adjust the trouble before further action is taken. 
Failing in this the executive committee in some instances, the 
local council in others, decides whether a general strike shall be 
called. In the Metal Trades Federation, the report of the local 
council is referred to the executive officer or the secretary of each 
affiliated union, who ascertains the opinion of his own trade 
executive board. If a two-thirds vote of the affiliated unions is 
in favor of supporting the grievance, and final efforts to adjust 
the trouble fail, a general strike led by the president of the 
Federation is declared. Once a strike is entered upon, the trade 
councils depend largely upon the individual unions to support 
their own members. The International Building Trades Council, 
however, instructs the general secretary-treasurer to keep as an 
emergency fund a sum equivalent to a per capita tax of five 
cents for each member of affiliated unions, and to levy an assess- 
ment of five cents per member whenever the emergency fund 
sinks below this amount. 



MACHINERY IN THE STONE CUTTING INDUSTRY. 
By S. Blum. 

The regulation of machinery in the building trades is left in 
most cases to the local unions ; but among the stone-cutters, 
where the ' planer ' has displaced many men, there are vigorous 
national rules restricting its use. Until 1904, the machine policy 
of the national union was not clearly defined. The rule forbid- 



559] The Economic Seminary, 1904-1905 19 

ding the transportation of cut stone from one place to another 
unless the interchange be mutually agreeable, was utilized as one 
of the methods employed in checking the use of machine-cut 
stone. The locals were required to make every effort possible to 
prevent the introduction of the planers in a jurisdiction where 
planers had not yet been introduced ; but since the absolute 
prohibition of the planer was impracticable, the locals might 
allow its use if once introduced. All planers were to be operated 
by stone-cutters, and the planer was not permitted to be used 
more hours per day than the working day of the stone-cutters in 
that local. The same policy of restriction was used against the 
stone-pick. Its use was to be discouraged in every manner and 
in no case could the pick be used on any stone that was to be 
shipped to any place where the pick was not used. 

In the convention of 1904 the questions of the planer and of 
the importation of cut stone, were the main topics discussed. 
The debate showed that the restriction of the planer had not been 
successful, and brought out clearly the antagonism in interests 
between the shipping points and the non-shipping points. The 
smaller locals feared that if they had no power to restrict the 
shipping of cut stone into their jurisdictions, they would be forced 
out of existence. The rules passed at this convention were 
designed chiefly to control the planer where it had been intro- 
duced. The locals are now required to rigidly enforce the rule 
that all planers within the jurisdiction of the union shall be 
operated by members of the union. The machine is to run only 
eight hours per day, but in case of necessity a double shift will 
be allowed. This is a concession over the previous rule which 
did not provide for a double shift. Planer men must receive the 
same rate of pay as other members of the local. Furthermore 
members of the Association are prohibited from cutting, fitting 
or setting any machine-cut stone unless the machines are oper- 
ated and controlled by members of the Association. The greatest 
modification, however, was made in the rules governing the 
transportation of cut stone. In place of the blanket prohibition 
against shipping cut stone except where the interchange was 
mutually agreeable, the present law provides that cut stone may 



20 Johns Hopkins University Circular [560 

be shipped ' ' from branches where planers are operated by stone- 
cutters, and where wages and hours are equal at the time the 
contract was let. But in no case shall planer-cut stone be 
shipped into the jurisdiction of any branch that has succeeded 
in keeping the planer out of their jurisdiction." This rule 
makes absolute the prohibition of the importation of planer-cut 
stone into jurisdictions where it has not been introduced, but it 
takes away from the locals the arbitrary power to place an 
embargo upon any stone they see fit. Hand-cut stone also may 
be shipped between branches, where equal wages and hours 
prevail. 

Although the national body has attempted to regulate the 
machine, the locals also have power to add restrictive rules. 
Certain locals are content with the constitutional provision that 
the union shall control the machine. Other locals in an attempt 
to directly limit the displacement of labor require that a certain 
number of journeymen shall be employed for each machine used. 
While the number of men displaced varies with the size of the 
machine and with the quality of the stone, each machine will 
displace from eight to fourteen men. In Salt Lake City twelve 
men must be employed on a double planer. This is the largest 
number of journeymen per machine of which there is record. 
In New York five stone-cutters must be employed for each man 
employed at the planing machine, and when five stone-cutters 
are discharged or suspended one planer hand shall also be dis- 
charged or suspended, and so on till a final suspension of work. 

The policy of restriction has not been successful. While it 
unquestionably has delayed the displacement due to the use of 
the machine, it has also caused a serious secession of members 
from the Association to a rival organization, which does not 
restrict the use of the machine. The policy of the stone-cutters 
does not take into account the readiness with which other material 
may be substituted for stone. Brick, tile, and terra-cotta come 
into close competition with stone and it is only by making stone 
cheap that its use in buildings can be increased. The planing 
machine tends to extend the use of stone by reducing its cost. 
Furthermore the policy of the Association is not regarded as a 



561] The Economic Seminary, 1904-1905 21 

temporary expedient, designed to enable the craft to pass without 
unnecessary hardship to the machine stage. If the restriction of 
the planer gave evidence of being only a temporary device, if a 
decrease of apprentices were provided for, or if the admission into 
the craft had been made more difficult, so as to make the mem- 
bership correspond in some manner, even if roughly, with the 
new requirements of the craft, the machine policy of the stone- 
cutters might be in some degree justified. But on the contrary, 
the stone- cutting trade faces more and more the inroads of 
machinery and offers only a cumbrous and ignorant opposition to 
the inevitable. Employers' hostility and internal dissension are 
the results. 



THE UNIT OF GOVERNMENT IN THE MEAT CUTTERS' 
AND BUTCHERS' UNION. 

By T. W. Glocker. 

Prior to 1897, the meat cutters and butcher workmen of 
North America were only organized in a few widely scattered 
cities. There were, at the close of the year 1896, twelve local 
unions affiliated with the American Federation of Labor, and 
two other unions entirely independent of any labor organiza- 
tion. Of these locals, however, five were almost extinct ; and 
the total membership, even including these five unions, did not 
much exceed three hundred butchers. On the other hand, the 
meat industry of the country, both wholesale and retail, had in 
large part, been consolidated under the control of six great firms 
among whom it was already rumored ' ' a gentlemanly agree- 
ment ' ' existed. Under such conditions, it was hopeless for the 
small local unions to attempt to cope with the employing firms. 
The demands of employees were, indeed, generally ignored by 
the packers, and attempts to organize unions were ruthlessly 
crushed out. To maintain relations with the heads of the great 
packing houses upon more equal terms, an international union, 
known as the Amalgamated Meat Cutters and Butcher Workmen 
of North America was chartered in January 1897, by the 



22 Johis Hopkins University Circular [562 

American Federation of Labor. By the first convention in 
December 1897, the International Union had under its jursidic- 
tion twenty-eight locals, and, immediately prior to the great 
strike in the summer of 1904, the number of locals had increased 
to nearly three hundred with a total membership of 75, 000. 

The rise of the so-called "Beef Trust" not only hastened the 
growth and strengthened the power of the international organ- 
ization, but also necessitated an increase in the size of the unit 
of government. In order to oppose to the great packers one 
single, solid body, it was decided at the convention of the 
American Federation of Labor, held in Nashville, Tennessee, 
December, 1897, that the Amalgamated Meat Cutters and 
Butcher Workmen should include every wage earner who 
handles meat from the man who takes the bullock on the hoof 
to the retail clerk who cuts the meat for the consumer. Never- 
theless, the Amalgamated Meat Gutters and Butcher Workmen 
cannot in a strict sense be called an industrial union. It includes 
only those employees who handle meat and utilize the by-pro- 
ducts ; and these men may, with some stretch of the imagination, 
be considered members of a single craft. Unlike the Brewery 
Workers, and a few other international unions, the Amalgamated 
does not include the members of those auxiliary trades, such as 
the stationary firemen, the stationary engineers, the coopers and 
the teamsters, who, while an integral part of the machinery of 
production, are yet quite distinct from the main body of workers. 

The history of the Meat Cutters and Butcher Workmens' 
Union has demonstrated that this exclusion of the auxiliary 
trades possesses certain advantages and certain disadvantages. 
On the one hand, the butchers have avoided the difficulty of 
trying to harmonize with themselves, distinct trades of whose 
needs, interests and technique, their officers are probably wholly 
ignorant. On the other hand, in attempting, either independ- 
ently or in sympathy, to conduct a boycott or strike against a 
common employer, the several organizations in the packing houses 
have often come into conflict, and, at times, have seriously neu- 
tralized each other's efforts. 

But, if not an industrial union, the Butchers' Union is, never- 



563] The Economic Seminary, 1904-1905 23 

theless, a complex amalgamation of workers in many branches 
of an exceedingly complex industry. The membership of the 
Union broadly includes the wage earner in the packing house or 
abattoir, and the meat cutter who is employed in the retail 
market or grocery store. In extending their jurisdiction to 
include this branch of the industry, the butchers have come into 
direct conflict with the Retail Clerks' Protective Association, 
who claim jurisdiction over the meat cutter on the score that he 
is a retail clerk. The butcher workers desire jurisdiction, because 
in case of a strike or a boycott against one of the packing houses, 
the meat cutter can render a valuable service by refusing to cut 
the meat slaughtered by such a firm. At the same time, the 
butcher workmen have made every effort to improve the con- 
dition of those members engaged in this branch of the industry 
in order to retain them in the union. In consequence, though 
the interests of the meat cutters are possibly more closely allied 
to those of the retail clerks, they, nevertheless, have probably 
fared better under the jurisdiction of the Amalgamated. 

Within the slaughter house are many departments or sub- 
divisions of the craft. The butchers, — properly so-called, — and 
their helpers include the cattle butchers, the sheep butchers, and 
the hog butchers, the live stock handlers, the beef luggers — 
stalwart men who lift and pack the great sides of beef — cooler 
men, truckers, and laborers. Another class is formed by those 
who prepare the meat in various ways for preservation and con- 
sumption, such as the dry salt men, the sweet picklers, the 
sausage makers, the canners, the ham house employees. Another 
class are those who are engaged in the utilization of by-products, 
as, for example, the green hide men, the oleomargarine workers, 
the wool workers, the lard refinery employees, the hair workers, 
and the soap workers. Each of these several departments is, 
moreover, further sub-divided. There are, for example, in the 
department of cattle butchering alone, over thirty special activi- 
ties from the expert floorsman and splitter to the unskilled tail 
ripper and gullet raiser. In consequence of this division of labor, 
over seventy-five per cent of the 40, 000 to 50, 000 men employed 
in the packing houses of Chicago may be termed unskilled. The 



24 Johns Hopkins University Circular [564 

skilled workers are mainly confined to the butchering depart- 
ments ; and a tendency has sometimes been shown to limit the 
membership of the Union to the more expert in their depart- 
ments. But it has since been realized that the unskilled, if 
unorganized, are a menace to the skilled on account of the pres- 
ent minute division of labor which renders it possible for the 
beginner to pass rapidly from the simplest to the most difficult 
grade of work. Moreover, as was manifested in the great strike 
of 1904, the butchers desire to raise the condition of the un- 
skilled. Therefore, partly from self-preservation, partly from 
altruistic motives, a broader policy has prevailed. 

Finally, the elements within the Amalgamated are further 
multiplied by the admission of women, of negroes, and of men of 
many nationalities, — Irish, Germans, Bohemians, Slovaks, Poles, 
and Lithuanians. How are these many discordant elements of 
craft, sex, color, and race harmonized and brought under the 
control of the International Union ? The division has been made 
primarily according to departments, or branches of the industry; 
and the unit of demarcation has been the local union. The meat 
cutters are, whenever possible, gathered into separate locals. In 
the large packing centres, such as Chicago, Kansas City, or South 
Omaha are to be found local unions of cattle butchers, hog 
butchers, oleo workers, and hide cellar men. All the employees 
in a single department are gathered into one union, irrespective 
of skill. Thus the local union of cattle butchers includes both 
the expert floorsman and the unskilled penner. The beef 
luggers' union includes also such common laborers as the cooler 
hands and the truckers. In the small towns, however, all meat 
cutters and butcher workmen are often united in one mixed 
union. It has usually been found impracticable to organize 
women and men in the same local. At the same time, the 
women in many departments are not numerous enough to be 
separated on the basis of sub-division of the industry. There- 
fore, the women working in the packing houses at Chicago or 
South Omaha, for example, are gathered into what is known as 
the woman's union. The Amalgamated Meat Cutters and Butcher 
Workmen of North America does not recognize, by distinct units 



565] The Economic Seminary, 1904-1905 25 

of government, differences of race, color, or nationality. In the 
early days of the woman's union in Chicago, a colored girl asked 
admission to the meeting room. ' ' Admit her, ' ' said the presi- 
dent, after a moment's silence, "and let everyone give her a 
hearty welcome. ' ' Since then, all women have been admitted to 
membership irrespective of race or color. The difference of lan- 
guage sometimes presents difficulties, but these are largely over- 
come by the use of interpreters, and by printing all documents in 
several languages. Harmony and unity of action is maintained 
between the several locals in one city by means of the packing 
trades council, in which are usually represented not only the 
unions affiliated with the Amalgamated but also locals of inde- 
pendent auxiliary crafts employed in the packing houses. 



THE MINIMUM WAGE IN THE MACHINISTS' UNION. 
By W. H. Buckxer. 

All trade unions attempt to fix minimum wages in their 
trades, and their devices for maintaining the minimum deserve 
careful study. The problem how to maintain such a minimum 
varies in each of the trades because of the diversity in the con- 
ditions surrounding them. It is therefore best to choose for 
study a trade in which conditions have varied and minimum 
rates are unstable. The machinists' craft furnishes just such a 
case. The advantage of studying one particular trade is particu- 
larly manifest, when our object is to compare the various methods 
of paying wages. 

It is hard to define who is a machinist, since from being a 
skilled hand-worker he has in recent years evolved into a skilled 
operator of many different kinds of machine tools. The mini- 
mum wage in this trade is a true minimum, and wages far higher 
than it are often paid. Diversity in the scales of machinists' 
wages, though not popular with the men, seems distinctly to be 
on the increase. The terms ' ' standard ' ' and ' ' minimum ' ' rate 
have different meanings, as used by machinists in this country. 



26 Johns Hopkins University Circular [566 

By ' ' standard ' ' wage is meant the wage received by the largest 
number of the workmen. 

I. The causes affecting the minimum wage, as to which the 
initiative lies with the Machinists' Union, are : 

(a) The maintenance among machinists of a strong organiza- 
tion. External strength in the union organization is valuable, 
as shown by the relations of the International Association of 
Machinists with the Amalgamated Society of Engineers ; and 
the importance of internal strength and discipline is equally 
obvious. 

(ft) The fixing of minimum rates by agreement. 1. The 
number of written agreements between union machinists and 
their employers has of late years greatly increased. The ' ' union 
shop ' ' clause sometimes inserted into these agreements is in- 
tended to protect the minimum wage but railway agreements 
never contain it. On the other hand, some owners of contract 
shops favor its insertion. The establishment anywhere of a 
minimum scale by written agreement is a sign of strength in the 
local lodge at that place. 2. Where the Machinists' Union is 
not strong enough to secure a written agreement, it usually 
attempts to fix a minimum scale by unwritten agreement ; but 
this method is much less satisfactory than the former, as under 
it the minimum rate may sink into complete abeyance. 

(c) The limitation by the Union of the hours of work. This 
has an important bearing on the minimum rate, because it has 
caused overtime work to be paid at higher figures, and because 
the shortening of the working day to 9 hours has led to an increase 
in the rates of pay per hour. The desire for shorter hours is 
mainly based on the belief that such hours tend to increase the 
demand for machinists' labor. 

(d) Control by the Union of admission to the machinists' 
trade. Such control is desired, for the protection of the minimum 
wage, partly in order to keep down the number of men seeking 
employment in the trade, and partly in order to maintain their 
standard of efficiency. Apprenticeship is therefore insisted upon 
as the only proper channel of admission. This policy includes : 
(1) opposition to the employment of helpers and handy-men in 



567] The Economic Seminary, 1904-1905 27 

machinists' work ; (2) strict limitation of the number of ap- 
prentices ; (3) proper training in the craft, which is insured by 
a four years' apprenticeship, and by the stipulation that the 
apprentice shall be given every chance to learn his trade, and 
that if, when his time is out, he cannot earn the minimum wage, 
he shall be dismissed. 

II. The causes affecting the minimum wage, over the origin 
of which the Union has no control, but which compel it to modify 
its policy from time to time, are : 

(a) Dullness or activity in the machinists' trade. When 
trade becomes dull and wages tend to fall, it is the policy of 
machinists to allow as little cutting of the minimum rate as pos- 
sible. They prefer working shorter hours, — anything rather 
than lowering the rate. In good times they raise the rate as 
high as possible. 

(6) The introduction of new machinery. Inventions have in 
the last 25 years revolutionized the work of the machine shop, 
and have thrown some men out of employment, and tended to 
produce specialists instead of all-around machinists. The ■ ' two- 
machine system " is a labor-saving arrangement which the Union 
bitterly opposes, on the ground that it deprives men of work. 
The specialist, long regarded as an inferior, was made eligible to 
the union in 1903. 

(c) The introduction of new methods of paying wages. 
Day-work has certain disadvantages both for the machinist and 
for his employer. To overcome these, several new methods of 
paying wages have been devised (1) ordinary piece-work, (2) 
differential rate piece-work, (3) the bonus system, (4) the 
premium plan, (5) the contract system. Dislike of the Union 
for piece-work and for all systems resembling it ; preference for 
those which recognize the minimum wage principle. 



28 Johns Hopkins University Circular [568 



THE APPKENTICESHIP KATIO IN THE IEON 
MOLDING INDUSTEY. 

By J. M. Motley. 

The development of the apprenticeship system in the iron mold- 
ing trade discloses four distinct periods. The first began with 
the introduction of the trade in this country, about the year 1800, 
and extended to 1847 when the first local union was organized. 
During this period apprenticeship was largely a personal matter 
between the employer or journeyman and the boy, though certain 
customary rules were generally observed. The second extended 
from 1847 to 1859, the period intervening between the organiza- 
tion of the first local union and the formation of the International 
Union. Throughout this period each local enacted independently 
apprenticeship laws. During the third period, extending 
from 1859 to 1886, the power to enact laws concerning appren- 
ticeship gradually passed from the locals to the National Union. 
The formation of the Stove Founders National Defense Asso- 
ciation in 1886 marks the beginning of the fourth period. From 
that date until the present time apprenticeship rules have been 
largely influenced by the conferences between the representatives 
of the National Defense Association and of the Iron Molders' 
Union, though the final power to sanction laws is reserved to the 
membership of these organizations. 

The struggle of these two bodies to reach a satisfactory 
apprenticeship ratio is in certain respects without a parallel 
in the history of any other trade and reveals the difficulty 
encountered in changing trade union rules which have once 
become firmly established. At the nineteenth convention of 
the Iron Molders' Union, held in 1890, a resolution was passed 
granting the incoming executive board power to confer with a 
similar body from the Defense Association for the purpose of 
adjusting the apprenticeship laws. Accordingly the first joint 
conference was held March 25, 1891, when the limitation of 
apprentices was discussed at length. As neither side possessed 
adequate data no definite action was taken other than the passage 



569] The Economic Seminary, 1904-1905 29 

of a resolution stating the actual condition of the trade and urg- 
ing that the question receive an immediate investigation and 
readjustment upon a more reasonable basis. 

At the second conference, convened in 1892, the apprentice- 
ship question was the first measure considered and laws acceptable 
to both parties were set forth in three different articles, the first 
of which fixed a new ratio, the second regulated the term of 
service and the third determined the manner in which instruction 
should be given to those received. In commenting thereon the 
editor of the Iron Molders' Journal, who was a member of 
the board, said, ' ' The three above clauses were unanimously 
agreed upon after the most careful consideration as a measure 
that would tend to harmonize differences between the two organi- 
zations on account of the restrictions and exactions under our 
present system." 

Although considerable pressure was brought to bear by the 
leaders of the Union on their members to grant the proposed 
increase of apprentices, when the vote circular was submitted, 
the second and third clauses were accepted but the one fixing a 
new ratio, the most important, was rejected. In his address to 
the twentieth convention of the Iron Molders' Union in 1895 
President Fox stated that he had made a special inquiry and 
found that some places had a ratio less than 1 to 8 (the union 
rule) ; others had as many apprentices as journeymen, while in 
other localities apprentices were largely in the majority. A 
general average of the bench and stove molding trade showed a 
ratio of 1 to 4 and furthermore that the 1 to 6 ratio could be 
allowed by the Union. The convention did not meet again 
until March, 1897, and in the meantime negotiations were con- 
ducted in joint conferences, both sides seeking mainly to secure 
the best terms possible in regard to wages, and using the appren- 
ticeship ratio as a make weight in the wage discussion. In one 
of the conferences Mr. Castle of the Defense Association offered 
a resolution to abolish the Berkshire system provided an appren- 
ticeship ratio of 1 to 4 was allowed. In refusing the proposition, 
President Fox stated that the Berkshire system existed in but 
very few of the stove shops and he believed that the day was 



30 Johns Hopkins University Circular [570 

near at hand when it would pass away entirely. He did not 
feel justified in advocating a change in the ratio of apprentices 
merely for the purpose of securing its abolition. 

In the spring of 1901 after both sides had collected data on 
the subject, it was decided by the joint conference that the 
legitimate needs of the trade demanded an apprenticeship ratio 
of 1 to 5. From the data collected it seemed probable that if 
the union ratio had been strictly adhered to, the supply of jour- 
neymen would have been inadequate to meet the legitimate 
demands of the trade. After much favorable discussion in the 
Iron Molders' Journal, the proposition was submitted to the 
trade for action. Little interest was taken in the matter, as 
returns were sent in from less than half the unions, but the pro- 
posed change was defeated by a vote of 15,842 to 504. A 
proposition, submitted at the same time, to establish a ratio 
between 1 to 5 and 1 to 8 met defeat by a vote of 12,314 to 
3,978. The ratio of 1 to 8 had been embodied in the laws of 
the Union for more than twenty-five years, during which time 
wages had been greatly increased. 

President Fox expressed his bitter disappointment at the result 
of the vote and ventured the opinion that the matter should be 
placed in the hands of the leaders of the Union who were always 
most active in bringing about needed reforms. This opinion was 
expressed at the 1902 convention of the Iron Molders, when 
another effort was made to secure a change of ratio. The com- 
mittee appointed to consider the question, recommended the 
adoption of a ratio of 1 to 6. A minority report recommended 
a ratio of 1 to 7. Still another proposal granted power to the 
officers of the Union to negotiate an agreement with the 
employers, but all three propositions were voted down. Two 
reasons may be given for this action. In the first place, the 
employers had asked for a radical change of ratio from 1 to 8 
and 1 to 4. At no time was there any probability that the con- 
vention would grant such an increase, and the mere request 
aroused the suspicion of the delegates as to the good intentions 
of the employers. Again, the impracticability of administering 
a law of limited application, for the ratio voted on was to apply 



571] The Economic Seminary, 1904-1905 31 

only to members of the National Defense Association, was recog- 
nized and it was urged that such a law would lead to serious 
difficulties. 

When the proposition for a 1 to 5 ratio met such a signal 
defeat in the vote of 1901, the friendly relations between the 
Union and Association were seriously threatened, but the crisis 
was safely passed by an agreement entered into in March, 
1902, under which employers not having sufficient molders were 
permitted to take additional boys, provided a careful investiga- 
tion had been made and the claims of employers confirmed. In 
making such an agreement the officials of the Union exceeded 
their authority but if the good will and confidence of the Defense 
Association were to be maintained some concession was necessary. 

At the conference in March, 1904, statistics were presented 
by the employers, which showed that the ratio actually observed 
in foundries operated by members of the Association was about 
1 to 5 and that in independent shops it was slightly above 1 to 4. 
This statement was verified by data collected by officials of the 
Iron Molders' Union and was accepted by the conference as the 
proper and just ratio. At a meeting of the executive board of 
the Molders' Union, June, 1904, the conference agreement of 1 
to 5 was approved but it was to apply only to foundries operated 
by members of the Defense Association. In September of the 
same year a circular was issued calling for a vote on the question 
of empowering the conference committee of the Iron Molders' 
Union to enter into an agreement with the Defense Association 
to establish an apprenticeship ratio in foundries controlled by 
members of that Association. All the influence possessed by 
the Union officials was exerted to carry this proposition. It was 
approved by the executive board, by a meeting of business agents, 
by prominent ex-officials, and the September and October num- 
bers of the Iron Molders' Journal were devoted to discussing the 
change, with the result that in December, 1904, the returns 
filed with the national secretary showed that the proposition had 
carried. Thus ended a long, weary struggle of thirteen years. 



32 Johns Hopkins University Circular [572 

THE BOOT AND SHOEWORKERS' UNION STAMP. 
By G. A. Bagge. 

The trade union label is a strictly American device. Its origin 
was due to the competition between organized workmen with the 
American standard of living and unorganized workmen recently 
arrived from countries with a lower standard of living. The 
label movement was at first an appeal to the public to favor 
union-made commodities and to discriminate against articles 
produced by poorly paid labor or under unwholesome conditions. 
It has thus been argued, that the label is a guarantee for better 
workmanship and production under sanitary conditions. The 
argument has, however, lost a good deal of its weight because 
of recent labor legislation. It is not always true that the label 
now stands for these qualities. The unions often, for the purpose 
of organizing as many shops as possible in the trade, are lax in 
enforcing such rules. Many non-union shops can also show 
superior workmanship and sanitary conditions. This function of 
the label has thus been forced in the back-ground and its most 
important function in most unions nowadays is the role it plays 
as a factor in organizing the workmen. 

The history of the Boot and Shoeworkers' Union furnishes a 
striking example. From the beginning the label has played an 
important role in the history of this Union. Before the forma- 
tion of the present Boot and Shoeworkers' Union there were 
several smaller organizations in the trade, such as the Lasters' 
Protective Union, a branch of the Knights of Labor, the Cut- 
ters' Union, the Edge Setters' Union and so on ; most of which 
had their own labels. The multiplicity of labels caused confusion 
and lack of confidence. The desire to secure a common label 
for the whole trade led to a conference of the officers of the 
different unions in 1893. This conference recommended the 
adoption of one label for the whole craft ; the recommendation 
was acted upon by a committee of delegates from the unions and 
the "blue label" was adopted in 1894 as the label of the trade. 
This led to further cooperation between the unions ; a joint 



573] The Economic Seminary, 1904-1905 33 

convention was held in 1895 and the present Boot and Shoe- 
workers' Union was organized. 

The main cause of the formation of the national Union was 
thus the label. The history of the decline and rise of the 
Union is also intimately related to the history of the label. The 
Union was founded on the principle of low dues and no benefit 
funds. This made an active label policy impossible because of 
the lack of funds for advertising and ' ' booming ' ' the label. 
But the contract for the use of the label offered the manufacturer 
was of such a nature, that it was necessary to create a demand 
for union -made shoes, before he could be induced to use the 
label. It was impossible to place the label upon the best goods 
made, and even the men belonging to the Union did not uni- 
formly buy union -made shoes. Meanwhile the Union declined 
more and more in membership and power. The membership 
sank from 14,000 in 1896 to 4,000 in 1898. 

The national officers realized that this was the beginning of 
the end and through their efforts a new policy was adopted at 
the fourth convention at Eochester, N. Y., 1899. The dues 
were raised to 25 cents a week per member and benefits were 
provided for. The higher dues made it possible to begin a 
vigorous campaign for the label, and the benefit feature enabled 
the national officers to enforce the label contract. The effect of 
this change in policy was striking. In 1896 ten factories were 
using the union label, in 1900 twenty-one, in 1901 sixty-one, in 
1902 one hundred and twenty-five. At present there are three 
hundred and ten "union stamp factories." The manufacture 
of "union stamp" shoes increased during the years 1899-1904 
from a few thousand pairs to approximately a million pairs daily. 

The increase in the use of the label has been followed by an 
increase in membership and power. In 1900 the membership 
had dropped to 2910, owing to the resistance against the higher 
dues ; to-day the Union has about 70,000 members. The Union 
has spread from Massachusetts to California, covering practically 
the whole of the United States and a part of Canada. During 
the years preceding 1889, 90 per cent, of the strikes were lost, 
now more than 90 per cent, are won. Many improvements in the 



34 Johns Hopkins University Circular [574 

workman's position have been secured and reductions in wages 
are frequently defeated without recourse to the strike. The in- 
tegrity of the arbitration contracts with the employers has been 
upheld, and most of the formerly independent unions have been 
brought into the national Union. 

The label of the Boot and Shoeworkers' Union consists of a 
stamp, which is impressed on the sole, insole or lining of boots 
and shoes, made wholly by members of the Union. The general 
president is the custodian and manager of the Union stamp, and 
the stamp is copyrighted in his name. This, however, only 
means that he is the legal protector of the stamp against misuse 
and counterfeiture, since the Union, being a voluntary associa- 
tion, has no standing before the courts. The real power over 
the stamp lies with the general executive board and the local 
unions. The general executive board has discretionary power 
in making rules, governing the use of the stamp, but it cannot 
direct the general president to issue the stamp to any firm, unless 
the contract between the manufacturer and the Union, permitting 
the use of the stamp, is approved by the local or by the joint 
council in localities where more than one local exists. The 
general executive board can, however, refuse to confirm the 
decision of the local, and when the local or the joint council has 
once approved the giving of the stamp to a firm, it has no voice 
in the question of continuing the issue of the stamps to the firm 
at the expiration of the contract. In a town or city, where no 
locals exist, the general executive board has sole jurisdiction and 
may issue or withhold the stamp. 

The union stamp contract now generally used was worked out 
in the fall of 1898 in a conference between the Union and W. 
L. Douglas of Brockton. By this contract the Union agrees to 
furnish its stamp to the employer free of charge, to make no 
discrimination between the employer and other firms who may 
enter into an agreement with the Union for the use of the union 
stamp, to make a reasonable effort to advertise the union stamp 
and to create a demand for the stamped products of the employer, 
in common with those of other employers using the stamp. The 
employer on his side agrees to hire as shoeworkers only members 



575] The Economic Seminary, 1904-1905 35 

of the Union, in good standing, and not to retain any shoeworkers 
in his employment after receiving notice from the Union that 
such shoeworker is objectionable to the Union, on account of 
being in arrears for dues or from any other cause. He agrees 
that the Union collector in the factory shall not be hindered or 
obstructed in collecting the dues of members working in the fac- 
tory, that the general president, or his deputy may visit the 
employes in the factory at any time. 

It is mutually agreed, that the Union will not cause or sanc- 
tion any strike and that the employer will not lock out his 
employes, while the agreement is in force. All questions of 
wages or conditions of labor, which cannot be agreed upon by 
conciliation, are to be submitted to a board of arbitration. The 
Union agrees to assist the employer in procuring competent shoe- 
workers to fill the places of any employes who refuse to abide by 
these provisions or who may withdraw or be expelled from the 
Boot and Shoeworkers' Union. Should the employer violate 
this agreement, he has to surrender the stamp to the general 
president. In case he should for any cause fail to deliver the 
stamp, then he is liable to pay $200 in damages to the Union. 
All questions of violation of the agreement on the part of the 
employer are referred first to the local union or joint council and 
thence to headquarters. The general president, if satisfied that 
the agreement is being violated, calls the attention of the em- 
ployer to such violation of the agreement, and, failing to obtain 
satisfaction, brings action to recover the Union stamp. 

The contract thus offers two advantages to the manufacturer. 
It provides for a settlement of all labor troubles in his factory by 
arbitration and it promises an increased sale, caused by the de- 
mand for union-made shoes. The latter can only be brought 
about by a vigorous campaign in favor of the union shoe, a 
campaign which the Union is the more willing to undertake, as 
an increased demand naturally forces more manufacturers to adopt 
the stamp. This advertising campaign thus becomes one of the 
most prominent features of the Union's label policy. Organizers 
travel around the country, making propaganda for the stamp 
both among trade unions and manufacturers. Every local elects 



36 Johns Hopkins University Circular [576 

a label committee, whose duty it is to promote the sale of union 
shoes, by exerting all possible influence upon the dealers, by 
securing the cooperation of other organizations and by such other 
methods as suggest themselves. Any member buying non-union 
goods, when union shoes can be had, is fined $2.00. At the 
same time large sums are spent in ordinary advertising purposes. 

The increase in the demand for union stamped goods means 
much to the shoe manufacturer, because he is doing business on 
a small margin and every increase in the output reduces the 
expense of production per pair. That demand for union shoes, 
however strong, is alone enough to compel the manufacturer 
to accept the Union's stamp is hardly probable. He had first 
to be assured that the Union was determined to keep the integ- 
rity of the arbitration contract inviolate and that it did not intend 
prematurely to raise wages and thus drive him out of business. 
This was understood from the beginning by the officers, who 
shaped the new policy, and the declared principle of the Union 
became to ' ' guard the contract against repudiation as carefully 
as a responsible business house does its financial standing." 
What makes this possible is the benefit policy of the Union. 
The benefit funds constitute a bond between the national union 
and the local, which makes it impossible for the latter to violate 
the contracts. If, however, individual members should violate 
a Union stamp agreement, then the general secretary fills the 
places of these men even when it entails upon the Union a con- 
siderable cost. In 1904 the general president complained that 
the time of organizers and advertising agents was exclusively 
taken up in defending the contracts, which made it impossible to 
conduct the advertising work with due vigor. 

The other main point in the Union's label policy is to issue 
the stamp to the manufacturer regardless of the wage conditions 
in his factory. The only condition is, that he shall let the Union 
organize his shop and then afterwards come to terms through 
mutual agreement or arbitration as stipulated in the label con- 
tract. He is free to hire and discharge whom he likes, and also 
to determine the system under which the work shall be done. It 
is in the interest of the Union that the union factories shall sue- 



577] The Economic Seminary, 1904-1905 37 

ceed in the competition, and it is not its policy therefore to ask 
for higher wages than the competitors give. The Union regards 
a uniform wage scale as an impossibility, since the cost of pro- 
duction varies widely in different localities. The margin of 
profit is so small that an increased cost of production must be 
taken out of the manufacturers' profit, and an increase in wages 
would thus drive the manufacturer out of business. 

It is thus not an immediate increase of wages, which is the 
aim of the Union. Its policy is to get as many manufacturers 
as possible to accept the stamp and in time to get the whole trade 
organized. When this time has come and a ' ' shoemaker' s 
trust ' ' is formed, it is the hope of the Union that it shall be 
able ' ' to advance wages as easily as the Standard Oil Trust now 
marks up the price of kerosene." Even then the interests of 
the manufacturer will not be opposed to those of the Union, as 
"he does not object to pay higher wages, if all his competitors 
do the same. ' ' Meanwhile the Union is spreading and has been 
very successful, thanks to this prudent policy. Whether the 
growth is quite natural is, however, a question the answer to 
which depends chiefly on whether the demand for Union label 
goods is a constant or an ephemeral factor in the market and 
whether it is possible for the Union to educate all its ' ' forced ' ' 
members, brought into the Union through the union stamp, to 
the principles of ' ' true unionism. ' ' 



THE COLLECTION OF TKADE UNION KEVENUE. 
By A. M. Sakolski. 

One of the most serious problems connected with American 
trade union finance is the difficulty experienced in enforcing the 
collection of national dues from the local unions. Since under 
the prevailing per capita tax system of revenue, the central 
treasuries of the national unions are dependent for support 
directly upon the funds of the locals, the latter are reluctant to 
empty their own tills in order to maintain an organization of 



38 Johns Hopkins University Circular [578 

which they form only a small part. Consequently, they seek 
by various means to evade the full payment of the per capita 
charges levied upon them. The under- estimation of the member- 
ship of local branches by the local secretaries when making 
remittances to the national treasury has been the principal form 
of the tax evasion. The method commonly practised has been 
to permit a certain number of members each month to fall 
behind in the payment of their local dues until after the remit- 
tance of the per capita tax had been made to the headquarters 
of the national union, in the meantime reporting these delinquent 
members as in arrears and consequently not in good standing. 
The locals practicing this fraud were thus relieved of a portion 
of the per capita tax, and were able to divert to their own coffers 
funds properly belonging to the national treasury. 

As a result of this systematic tax dodging, a large number of 
national unions were deprived of considerable portions of their 
incomes. Thus, in the Iron Molders' Union — an organization 
maintaining a higher grade of discipline among its members than 
is ordinary among American unions, — it was estimated in 1895 
that only seventy-five per cent, of the per capita tax due from 
the locals have reached the central treasury. In other less 
centralized national unions, the percentage of evasion was much 
greater, the secretary of the Boiler Makers in 1899, reporting 
that of a total registered membership exceeding six thousand, 
the per capita tax had been received on less than one- half that 
number. 

Several remedies for this form of tax evasion have been adopted 
by various unions. The written constitutions of a large number 
provide for the imposition of heavy fines and penalties upon 
local branches discovered in evading the payment of the national 
dues. The United Mine Workers, for example, prescribe sus- 
pension from the national union as the penalty for this offense. 
The constitutions of the Brotherhood of Boiler Makers and Iron 
Ship Builders and the Amalgamated Meat Cutters and Butcher 
Workmen give the executive officials power to discipline at their 
discretion local unions misrepresenting the number of their 
members. 



579] The Economic Seminary, 1904-1905 39 

Others again, require the local to send with its remittance a 
full list of the names of members paying dues, thereby enabling 
the national secretary by comparing consecutive lists to ascertain 
the standing of each individual member at every payment of the 
per capita tax. If members are not reported on these lists, 
they are excluded from the benefits paid by the national union. 
Local secretaries remitting false reports would be wrongly depriv- 
ing members of their rightful privileges. 

Neither of these plans, however, has proved as effective in 
collecting the revenue of the national union as "the stamp 
receipt system." This system was first introduced by the Cigar 
Makers' International Union and has been adopted by many of 
the leading trades unions. Briefly described " the stamp receipt 
system" consists in the sale of adhesive stamps to the local 
unions. Each stamp represents the amount of the periodical 
per capita tax or other charge levied by the national organiza- 
tion on the payment of dues by a member. Stamps are affixed 
by the local secretaries to his due book or working card. The 
stamps serve as a receipt and no other form of receipt is recog- 
nized by the national union. Consequently each member, in order 
to be in good standing and entitled to national benefits must show 
the full number of stamps in his due book properly dated and 
canceled. In order to prevent counterfeiting or duplication, the 
color of the stamps are changed at irregular intervals by the 
national officers. Since remittances must accompany orders for 
stamps and since local unions, would endanger the good standing 
of their members, if they exhausted their supply of stamps, 
downright evasion of the full payment of the national tax has 
become difficult. As a consequence, the national unions after 
adopting the ' ' stamp receipt system ' ' have experienced an 
increase in paid-up membership and a proportionate enlargement 
of their incomes. Thus, the receipts from the per capita tax of 
the International Typographical Union during the first four 
months after the adoption of the system showed an average 
increase per month of four thousand members over the preceding 
months. The International Association of Machinists, the Jour- 
neymen Plumbers' Association and the Iron Molders' Union 



40 Johns Hopkins University Circular [580 

have also benefited materially by the introduction of this method 
of collecting revenue. 

Despite the advantages resulting from the stamp receipt sys- 
tem, however, it has not proven entirely effective. The national 
unions still complain of tax dodging and evasion of assessments, 
and stricter methods of enforcing discipline and controlling local 
finances are advocated. A useful device for assisting the col- 
lection of revenue, recently installed by several of the best 
managed national unions is the duplicate card-filing catalogue. 
By this means, a complete record of every member of each local 
union is kept at the national headquarters. The standing of 
each member can thus be ascertained at all times and conse- 
quently evasion of dues or fraudulent claims to benefits are 
readily detected. Supplementary to the card-filing catalogue, is 
the system in use in several of the leading national unions of 
registering the membership by numbers. Under this system, 
each member when initiated, is assigned a number by which he 
or she is designated at the national office. This number is placed 
in the member's due book or union card and a duplicate record 
is kept on file in the card catalogue or books of the national 
union. To unions in which benefits to members are paid direct 
from the general funds the system of numbering combined with 
the card-filing catalogue, is a great administrative convenience. 
It has been successfully adopted by the Iron Molders' Union, the 
Brotherhood of Painters and Decorators, and the Pattern Makers' 
League and has been long in use by the Cigar Makers' Inter- 
national Union. 



HISTOKY AND THEOEY OF INSUKANCE. 
By Clayton C. Hall, LL. B., A. M. 

While the development of insurance, as a systematic method 
of avoiding the disastrous effects of a fortuitous calamity such 
as fire or shipwreck, which to the individual might prove over- 
whelming by distributing the loss among the members of a 
community or of an association, is a part of the evolution of 



581] The Economic Seminary, 1904-1905 41 

modern civilization, the origin of the idea of the assumption by 
one person of certain risks to which another is exposed can be 
traced to very early times. 

Of the three chief subjects or branches of insurance, designated 
respectively as life, fire, and marine, the last named is by far 
the most ancient, contracts of the nature of marine insurance 
upon shipping ventures having been made long before the 
Christian era. Its development, however, was reserved to the 
period of the commercial activity of the towns constituting the 
Hanseatic League. 

The origin of fire insurance is attributed to the mutual aid 
afforded in case of disaster to members of the mediaeval guilds, 
and it was not until the 17th century that corporations were 
formed for the purpose of insuring against losses by fire as a 
matter of business. 

Efforts to determine the value of life estates, and of annuities 
for life, led at an early date to speculations or estimates as to the 
value of estates depending upon the duration of the life of the 
tenant, and the recognition of the fact that the value of such 
estates depended in a measure upon the age of the life tenant. 
This was recognized in the administration of the Roman law 
before the Christian era and afterwards more definitely formu- 
lated by the jurist Ulpian. But it was not until near the close 
of the 17th century that any scientific observations were made 
and published upon the subject of the rate of mortality at 
different ages of life. The first table upon this subject was 
published by Dr. Halley, Astronomer Royal, in 1693, and was 
based upon observations upon the deaths occurring at different 
ages in the City of Breslau, in Silesia, the only community which 
the observer could then find in which the ages at death of the 
decedents were recorded. During the 18th century more careful 
observations upon mortality were made, and during the 19th 
century the subject was greatly developed, and as a result of more 
careful classification of data, it was ascertained that persons 
receiving annuities are as a class of much greater longevity than 
persons whose lives are insured for a sum payable at death ; 
indicating that there is a natural though unconscious tendency 
on the part of persons seeking contracts in which life contingen- 



42 Johns Hopkins University Circular [582 

cies are involved, towards the selection of that form which is best 
adapted to their own particular needs. 

In the meanwhile the mathematical theory of probability, which 
lies at the root of any sound system of insurance, had been 
worked out by Pascal, La Place and other distinguished mathe- 
maticians and philosophers. 

It was not, however, until after the middle of the eighteenth 
century that a life insurance company was established, the opera- 
tions of which were based upon the true theory as to the proba- 
bility of the occurrence of death, and with rates of premium 
determined according to the age of the applicant for insurance. 

The theory of insurance requires for its successful application, 
(1) A considerable number of persons exposed to a similar risk 
of loss from some cause which they cannot control, the effect of 
which in the individual case would be disastrous, but the occur- 
rence of which is sufficiently infrequent to make the effect, if 
distributed through the entire group, and therefore the cost of 
protection by insurance, comparatively light. (2) The indi- 
vidual risk must be so widely separated or at least so far 
independent as to avoid the probability of a considerable pro- 
portion of them being at any time involved in the same calamity. 
(3) The frequency of the occurrence of loss must be known with 
sufficient accuracy for the rate of contribution to be made by the 
individuals thus associated to be determined with some approach 
to certainty. These rudimentary or fundamental ideas are carried 
into effect by insurance companies doing business the world over, 
whose policy holders, strangers to each other, are thus associated 
for the purpose of mutual aid and protection. 

In this form of association is to be recognized one of the most 
typical developments of civilization, in that the elements are fore- 
sight and co-operation, and it is precisely these features that dis- 
tinguish the civilized from the savage condition of life. 

The occasions of loss for which it is sought to provide indem- 
nity by means of insurance are divided into two widely different 
classes of events. First, an event, such as a fire or shipwreck, 
which may or may not happen, and the risk of which is not 
necessarily increased by lapse of time. Second, an event, such 
as human death, which is sure to happen within a period which 



583] The Economic Seminary, 1904-1905 43 

can be definitely limited, the time of its happening in the indi- 
vidual case being alone uncertain. In the first class of cases 
where the risk remains practically imiform from year to year, the 
current premium is assumed to be sufficient for the current risk ; 
but in the second class where the risk of death or of sickness is 
to be provided for, when the probability of the former, and the 
frequency and duration of the latter increase with increasing age, 
if the cost is to be met by yearly premiums of uniform amount, a 
properly adjusted fund, of the nature of a sinking fund, but ordi- 
narily, in insurance administration, called the reserve fund, 
needs to be accumulated. As a condition of solvency there must 
be a constant equation, an equilibrium, between the obligations 
assumed and the resources for meeting them. As with the 
increasing age of the insured life the imminence of liability under 
the former increases, while the value of future contributions in 
the way of premium payments diminishes, the difference must be 
represented by the reserve fund, the true methods of determining 
which are easily demonstrable and well established. 

In Germany and in other countries of Continental Europe 
there is provided by law a compulsory system for the insurance 
of workingmen against death, disability resulting from accident 
or sickness, as well as a provision for old age pensions, to the 
cost of which both the Imperial Government and the employers 
contribute. In this country, under different political conditions, 
such insurance is practically provided, but at the cost of the 
wage earner, through the various industrial insurance companies, 
the fraternal associations, insurance features of trades unions, 
and the relief departments maintained by many of the great 
transportation companies. To the cost of maintaining these last, 
the employing companies are liberal contributors. 

In addition to the three older branches of insurance already 
mentioned, there has in recent years been a rapid development 
of other forms, such as accident or casualty, employer's liability 
and fidelity insurance. The last named has lately attained large 
proportions, and the advantages of corporate responsibility upon 
bonds of persons occupying positions of trust are such that it has 
almost entirely superseded the older method of personal suretyship. 



A REPRINT OF ECONOMIC TRACTS. 

Under the Editorial Direction of Professor J. H. Hollander. 

(SECOND SERIES.) 



The series will consist of the following tracts : 

(\). A Discourse op Trade. By Nicholas Barhon. London, 1690. 

(2). Several Assertions Proved. By John Asgill. London, 1696. 

(3). Discourses upon Trade. By Dudley North. London, 1691. 

(4). England's Interest Considered. By Samuel Fortrey. Cambridge, 1663. 

The edition will be limited to five hundred copies. The subscription for series of 
four tracts has been fixed at the net price of One Dollar (5 shillings— 5 marks— 6 francs). 



Of the first series of reprints a limited number can yet be obtained at the price 
of $1.50 net, for the series. They can, however, be supplied only in conjunction with a 
subscription to the second series. As the edition approaches exhaustion, the price is 
likely to be further increased. The first series consists of the following tracts : 

(1). Three Letters on "The Price of Gold." By David Ricardo, 1809. 

(2). An Inquiry into the Nature and Progress of Rent. By T. R. Malthus, 1815. 

(3). Essay on the Application of Capital to Land. By Sir Edward West, 1815. 

(4). A Refutation of the Wage-Fund Theory. By Francis D. Longe, 1866. 



THE FINANCIAL HISTORY OF BALTIMORE, 

By Professor J. H. Hollander. 

400 pagres. 8vo. Cloth, $3.00. 

Finances and Administration of Providence, 

By Howard K. Stokes. 

464 pages. 8vo. Cloth. Price, $3.50. 

THE AMERICAN WORKMAN, 

By Professor E. Levasseur. 

An American Translation by Thomas S. Adams, edited by Theodore Marburg. 

540 pages. Octavo. Cloth. Price, $3.00. 

A Trial Bibliography of American Trade-Union Publications 

Prepared by the Economic Seminary of the Johns Hopkins University 
and edited by Dr. G. E. Barnett. 

112 pages. Octavo. Paper. 50 cents. 

(Nos. 1-2 of Johns Hopkins University Studies in Historical and Political Science, 

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X 



_ Jd No. 3 

cec 

THE 



JOHNS HOPKINS 



CJNIVEBSITY CIECULAE 



THE 

ECONOMIC SEMINARY 
1905-06 



Baltimore, Maryland 

Published by the University 

Issued Monthly from October to July 

March, 1906 

[New Series, 1906, No. 3.] 
[Whole Number 185.] 

Entered, October 21, 1903, at Baltimore. Md., as second class matter, under 
Act of Congress of July 16, 1894. 



»k kit &m 

lift!) 



JOHNS HOPKINS UNIVERSITY CIRCULAR, No. 185 



MARCH, 1906 



CONTENTS 

PAGE 

The Economic Seminary, 1905-06 : 

Frederick W. Hilbert. 4 

The Finances of Santo Domingo. By Jacob H. Hollander, 5 
The Standard Wage as a Bargaining Device. By George E. 

Barnett, 7 

Exclusive Agreements in the Building Trades. By F. "VV. 

Hilbert, - - -12 

Labor Unions which do not maintain Apprentice Laws. By 

James M. Motley, - -17 

The Early History of the Corporation Tax in Maryland. By 

Hugh S. Hanna, - - - - - - - - 22 

Women in the Trade Union. By T. W. Glocker, - - 25 
Jurisdictional Disputes in Breweries. By S. Blum, - - 29 
The Retirement Association of Letter Carriers. By J. B. Ken- 
nedy, - - -33 

The Label of the United Hatters of North America. By E. B. 

Spedden, 37 

European Methods of Control over Railway Rates. By W. 

H. Buckler, 41 



THE 

JOHNS HOPKINS 
UNIVERSITY CIRCULAR 

New Series, 1906, No. 3 MARCH, 1906 "Whole Number, 185 

THE ECONOMIC SEMINARY, 1905-1906 

Edited by Professor J. H. Hollander and 
Dr. G. E. Barnett. 



The primary activity of the Economic Seminary during the 
current academic year has continued to be an investigation into 
the history, activities and influence of labor organizations. Its 
membership as heretofore, has been limited to advanced students 
preparing for a scientific career in economic study, and its pri- 
mary design has been the development of sound method in 
economic research. The regular fortnightly evening sessions 
have been supplemented by briefer morning sessions in alternate 
weeks. The material resources necessary for the inquiry have 
been supplied by the continued generosity of the donor, whose 
original gift made its inception possible. 

Appreciable progress has also been made by individual mem- 
bers of the Seminary in the study of specific aspects of the 
several questions assigned for investigation. During the sum- 
mer, field work was carried on in various carefully selected 
localities, and the data thus collected have since been supple- 
mented and corrected by documentary study and personal 
interview. Two monographic studies, submitted by senior 
members of the Seminary in part fulfillment of the requirements 

1 



Johns HojjJcins University Circular 



[174 



for the doctor of philosophy degree, were issued: "The Finances 
of American Trade Unions" by A. M. Sakolski, Ph. D., 
and ' ' Labor Federations in the United States ' ' by William 
Kirk, Ph. D. Both essays appeared in the Johns Hopkins 
University Studies in Historical and Political Science, xxiv 
Series. A co-operative volume of "Studies in American Trade 
Unionism" (Holt & Co.) was also issued, embodying the pre- 
liminary results of specific investigations now in progress, but 
ultimately designed for monographic publication in completed 
form. During the past two years a large amount of additional 
documentary material has been collected by the Seminary, and 
it is proposed, with the aid of a recent grant by the Carnegie 
Institution, to issue during the course of the next academic year, 
a second, much enlarged edition of the ' ' Trial Bibliography of 
American Trade-Union Publications." 

The record of the proceedings of the Seminary, and abstracts 
of certain papers there presented, are appended : 

October 11. Keports of the summer field work, by Professor Hol- 
lander, Dr. Barnett, Messrs. Kennedy, Blum, 
Glocker, Hilbert and Motley. 

October 17. An " Introduction to Studies in American Trade Union- 
ism," by Professor Hollander. 

October 25. ' ' Development of Collective Bargaining in the United 
States," by Mr. F. W. Hilbert. 

October 31. " The Structure of the Typographical Union," by Dr. 
George E. Barnett. 

November 7. "Shop Rules of American Trade Unions," by Mr. 
Solomon Blum. 

November 14. "Railway Rate Regulation in France," by Mr. W. H. 
Buckler (published in the Quarterly Journal of 
Economics, February, 1906). 
"Opportunities for Social "Work in the Charity Organi- 
zation Society," by Mr. James M. Motley. 

November 21. "American Trade Unions and the Apprentice," by Mr. 
James M. Motley. 
" Social Settlement Work in New York City," by Mr. A. 
M. Sakolski. 

November 28. "Present Labor Difficulties in Baltimore," by Mr. E. R. 
Spedden. 

December 5. "Beneficiary Features of American Trade Unions," by 
Mr. J. B. Kennedy. 



175] The Economic Seminary, 1905-1906 3 

December 12. " Irani igration Conference of the National Civic Federa- 
tion," by Mr. Theodore Marburg. 
" Landing of Immigrants on Ellis Island," by Mr. W. R. 
Straughn. 
December 19. "Child Labor Regulation in Maryland," by Dr. Walter 
Ufford. 
" Washington Meeting of the National Child Labor Con- 
ference," by Mr. W. H. Buckler. 
"Local Labor Strikes," by Mr. E. R. Spedden. 
"American Trade-Union Structure," by Mr. T. W. 

Glocker. 
"Baltimore Meeting of the American Economic Associa- 
tion," by Professor Hollander. 
"The Minimum Wage as a Bargaining Device," by Dr. 

George E. Barnett. 
"Civic Organizations and Municipal Parties in Balti- 
more," by Mr. Solomon Blum. 
"Statistical Tabulation of Inmates of Alms-houses in 
Baltimore," by Mr. F. W. Hilbert. 
February 6. "The Present State of Apprenticeship," by Mr. James 

M. Motley. 
February 13. "The Finances of Santo Domingo," by Professor Hol- 
lander. 
Febrnary 20. As a tribute to the memory of Mr. Frederick William 
Hilbert, who died Saturday, February 17, 1906, the 
regular bi-weekly meeting of the Seminary was post- 
poned. 
February 27. " Financial History of Maryland," by Mr. H. S. Hanna. 
March 6. "Work of the Bureau of Corporations," by Dr. John 

Porter Hollis. 
March 13. "The Label of the Hatters' Union," by Mr. E. R. 
Spedden. 



January 


9. 


January 


16. 


January 


23. 


January 


30. 



Johns Hopkins University Circular [176 



Frederick W. Hilbert, Fellow in Political Economy, died 
suddenly on February 17, 1906. Mr. Hilbert was born April 26, 
1871. He received the degree of Bachelor of Arts at Randolph- 
Macon College in June, 1896, and the degree of Master of Arts 
in June, 1897. In October, 1902, he began graduate study in 
Political Economy at the Johns Hopkins University ; in 1904- 
1905 he held a University scholarship, and in June, 1905, was 
appointed to a fellowship. From October, 1905, to the time of 
his death, he also acted as Assistant in Political Economy. 

For sometime prior to his death, Mr. Hilbert had been 
engaged in an extensive study of collective bargaining in the 
United States. He had intended offering this work in May, 
1906, as a dissertation, in part fulfillment of the requirements of 
the University for the degree of Doctor of Philosophy. His chief 
published work consists of two essays — "Employers' Associa- 
tions in the United States " and "Trade-Union Agreements in 
the Iron Molders' Union ' ' — published in the recently issued 
" Studies in American Trade Unionism.' ' 



177] The Economic Seminary, 1905-1906 5 

THE FINANCES OF SANTO DOMINGO. 
By Jacob H. Hollander. 

The conditions presented by the Dominican Eepublic may be 
briefly summarized : The country is extensive in area, and rich 
in natural resources and economic possibilities. The population — 
with the exception of a handful of malcontents — is a sturdy, but 
inarticulate peasantry, by nature simple-minded, peace-loving, 
and, as far as any tropical people go, industrious. The govern- 
ment is republican and representative in form, but without either 
the historical development or the political traditions which make 
popular institutions secure and efficient. Civil disorder and 
administrative misrule have bankrupted the public treasury ; 
and a large and recklessly incurred public debt has relapsed into 
accumulated default. 

The recent history of Santo Domingo may be conveniently 
dated from the energetic movement to affect its annexation to the 
United States in 1869-70. The early history of Santo Domingo 
and, more particularly, the amazing political experiences of the 
Republic in the thirty-five years which have elapsed since the 
annexation movement can only be described as a miserable 
succession of revolution and anarchy, interrupted by ruthless and 
blood-stained dictatorships. From 1871 to 1882 Cabral, Baez, 
Gonzalez and Luperon alternated in control, their struggles being 
marked by uprising, ravage and bloodshed, and terminating 
invariably in social demoralization and economic ruin. It was 
during this decade that the most vicious rules of the game of 
revolution as it is played in Santo Domingo won acceptance. 
In 1882 Ulises Heureaux came to the fore in Dominican politics, 
and the next seventeen years form the story of his uncontrolled 
dominance. For a time his creatures were installed in the 
presidency, to preserve a semblance of constitutional form ; but 
throughout he was absolute dictator. Heureaux' s rule was not 
even a benevolent despotism. Brutal cruelty, insatiable greed, 
moral degeneracy, were the man's personal characteristics, and 
they shaped his political conduct and his administrative activity. 



6 Johns Hopkins University Circular [178 

If Santo Domingo was at peace during Heureaux's time, it 
was the peace of a merciless terrorism, not the quiet of civil 
government. 

A seeming well-being prevailed, but it was attained by barter- 
ing the resources of the country in prodigal concessions and by 
discounting the future in reckless debt accumulation. With 
Heureaux's assassination in 1899 came the deluge, and the next 
five years constitute a climax even in the history of Latin- 
American politics. Figuereo, Vasquez, Jiminez, Vasquez again, 
Woss Y Gil and Morales successively occupied the presidential 
chair, each attaining it by much the same means, and holding it 
by as uncertain tenure. The ordinary crimes of the political 
decalogue became commonplaces. The country was laid waste, 
the people crushed to hopelessness, the treasury left to stew in 
utter bankruptcy, and a host of creditors, foreign and domestic, 
after tightening their hold upon the future become more and 
more insistent in the present. In January-February, 1905, in 
face of the imminent likelihood of foreign intervention, the pro- 
tocol of the agreement now pending for ratification was arranged 
between the Dominican Republic and the United States. Upon 
the adjournment of the United States Senate on March 18, 1905, 
without final action upon this agreement, an interim arrange- 
ment was arranged providing for the collection of the Domini- 
can customs revenues by a person designated by the President 
of the United States, and for the segregation of fifty-five per 
cent, of the proceeds. On April 1, 1905, this temporary 
arrangement went into effect, and is now in actual operation. 

The misgovernment and disorder which have characterized the 
political history of Santo Domingo in the past thirty-five years, 
are reflected with exactness in the financial experience of the 
country during this period. Current resources have been de- 
rived almost exclusively from indirect taxes upon necessary 
consumption, crudely administered and long since increased 
beyond the point of maximum return. The taxes so wrung 
from the country's poorest classes have been wasted and stolen 
by successive dictator-presidents, with barely a pretense to 
applying any part to the legitimate objects of governmental 



179] The Economic Seminary, 1905-1906 7 

expenditure. There has been no real audit of receipts and dis- 
bursements, and so-called public accounting has commonly been 
either a literary formality or a purely personal matter between 
the dictator in power and his favored supporters. Finally, the 
credit of the Republic has been exploited to bankruptcy, and a 
formidable public debt, funded and floating, has been incurred, 
without regard either to present resources or to future obligations. 
The history of the modern public indebtedness of Santo 
Domingo is almost entirely comprised within the past thirty-five 
years. The origin of a few claims may be traced even further 
back ; but in the main 1869 is the starting point of the recent 
financial, as of the political history of Santo Domingo. With 
respect to the growth and the status of the debt, this term of 
thirty-five years falls naturally into three periods : 1. 1869— 
1887, the genesis of the debt ; 2. 1888-1897, the decade of 
bond issues ; 3. 1898-1905, the period of floating indebtedness. 



THE STANDARD WAGE AS A BARGAINING DEVICE. 
By GEORGE E. Barnett. 

The standardization of commodities in measure and quality is 
always sought on account of the resultant convenience in bargain- 
ing. But some commodities always remain entirely or partially 
unstandardized. The buying and selling of horses, for example, 
has always been subject to this grave defect. Few commodities, 
however, are so difficult to standardize as human labor. If, in 
any trade, all workers were exactly equal in productive capacity, 
the carrying on of collective bargaining would be enormously 
facilitated. 

The difficulties in formulating a measure of labor have been 
encountered in widely varying degrees by different trade unions. 
Among piece-workers some standard measure of labor more or 
less exact almost always emerges even in the absence of a trade 
union. The earliest societies of printers and shoe workers in the 



8 Johns Hopkins University Circular [180 

United States, at their inception found in existence recognized 
modes of measuring labor. Some employers paid under the 
scales and the societies frequently had difficulty in forcing uni- 
formity, but the existence of a standard according to which 
payment was made, made it possible for the union to concentrate 
its efforts on raising the rate. In practically all piece trades, the 
union's scale while nominally a minimum scale, is in reality a 
uniform scale. Only in exceptional instances is a piece worker 
paid beyond the scale. A system of inspection keeps the stand- 
ard of the work up to a given level. A few workers may receive 
a higher price per piece for nominally the same work, but in 
reality the work so remunerated is almost always of different 
quality. On account of the ease with which piece work is 
standardized, unions of piece workers come into existence more 
easily and naturally than unions of time workers. 

Even among time workers, many trades find little or no 
difficulty in the establishment of a measure for labor. The 
largest group of such unionists in the United States is made up 
of the Railway Brotherhoods. Strict entrance examinations, 
promotion according to seniority, rigid discipline, standardize the 
railway employees. It is thus brought about that the railway 
employees of a given rank differ so little in the efficiency with 
which they discharge their duties that to all men of a given rank 
and term of service the railway company, of its own volition 
accords the same pay. As the size of the business unit increases 
in any trade, the standardization of the workman is likely also 
to increase. The unions of workmen in such trades, relieved as 
they are of a perplexing problem, are able to devote a large part 
of their attention to the method of insurance. 

But there remains a great body of time workers who have 
difficulty in formulating a measure of labor since their members 
vary greatly in efficiency. In practically all of these trades, the 
device of a minimum w T age has been adopted. Under this plan, 
all wage workers exceeding the minimum in efficiency are left to 
secure remuneration for their superior efficiency in individual 
bargaining. If the standard rate were simply a protection 
against the forcing down of the wage level below the ordinary 



181] The Economic Seminary, 1905-1906 9 

standard of the community, it would be possible for most of the 
trade unions to set their minimum wage at a level which would 
include nearly all the workmen in the trade. Ordinarily, how- 
ever, for the minimum wage to be effective as a bargaining device 
for the great body of workmen in the trade, it must be set higher 
than this level. A trade union, containing men of widely vary- 
ing degrees of efficiency is impelled, by this consideration, to 
make of its minimum wage a device for collective bargaining not 
only for its most inefficient members but also for the higher 
grades of workmen. A simple minimum wage set at the level of 
the poorest workman, leaves too much ground open for individual 
bargaining in the more efficient groups. 

These efforts may be divided into two groups : (1) Attempts 
to make the workmen or the services rendered more uniform. 
(2) Attempts to introduce several standards of payment for 
different groups of workmen. By both of these lines of activity, 
the field of collective bargaining is widened and that of indi- 
vidual bargaining narrowed. 

(1). The Standardization of the Workman. Chief among the 
methods used for this purpose are : 

(a) The enforcement of rules for the training of apprentices. 
In many trades, the apprenticeship question has lost its signifi- 
cance as a device for securing the limitation of the number of 
workmen, but retains great importance as a device for promoting 
the standardization of the workman. Obviously, a trade made 
up of incompetents and skilled workmen presents difficulties in 
forming a standard wage. The better workmen, relying for 
their pay on their superior qualities, derive little aid from a 
standard wage based on the wage of the incompetent. The field 
left for individual bargaining is so large that collective bargain- 
ing for a certain minimum efficiency renders little aid to superior 
workmen. If the union can enforce rules as to the training of 
the workman, the distance between the worst class and the better 
classes of workmen is lessened, with the result that the differential 
received by the better workman has a real relation to the mini- 
mum wage. The interest of the trade unionist in the training, 
as distinguished from the limitation of apprentices, is thus a vital 



10 Johns Hopkins University Circular [182 

one in many trades. Naturally, in many cases, limitation bears 
a certain relation to training since it frequently happens that a 
large number of apprentices cannot be satisfactorily taught. In 
theory and usually in practice, however, the two devices are 
distinguishable. 

(6) A trade union may approach the question more directly 
by requiring for entrance a certain proficiency in the trade. 
This proficiency is in a number of unions ascertained by an ex- 
amination. Difficulties occur in carrying out such a plan. If 
any considerable number of men are shut out of the union, they 
become a menace to the maintenance of the scale. A union 
must always exclude some of the poorest workmen, but it cannot 
carry such a policy very far. Usually, entrance examinations 
have had little relation to the standardization of the workmen, 
but have been contrived as a monopolistic measure. 

Since attempts to standardize workmen have their origin ordi- 
narily in the desire to influence the wages received by the better 
workmen, such attempts are usually directed toward raising the 
efficiency of the poorer workmen. 

(2). The Grading of the Standard Wage According to the 
Classes of Workmen. 

(a) The most common case of this kind is the practice prev- 
alent in many unions of permitting incompetent workmen to 
work below the minimum rate. Such a practice evidently per- 
mits the standard rate to be put higher than it otherwise could 
be without excluding from the union too many workmen. Form- 
erly in the Typographical Union and at present among the Brick- 
layers, a part of the men are permitted to work at a fixed rate 
below the minimum. This practice, however, has been found 
to endanger the maintenance of the standard rate. The diffi- 
culty, of course, lies in the impossibility of fixing a definite cri- 
terion by which to classify the incompetent workmen. The 
workmen permitted to work below the scale compete with those 
covered by the scale and the practice, if at all widely extended, 
is likely to end in a complete reversion to individual bargaining. 

(b) A few unions have tried the experiment of establishing 
separate scales for specially efficient workmen. The difficulty 



183] The Economic Seminary, 1905-1906 11 

here, again, lies in establishing a test of efficiency. The ordi- 
nary method is to require that if a man has once reached a certain 
wage by individual bargaining, he shall be assigned to a higher 
class. But the desire for steady work makes the workman dis- 
like being placed in a class where he cannot use his power of 
individual bargaining to compete directly with inferior workmen 
in his trade. 

(c) An indirect, but probably by far the most effective 
measure for grading workmen and thus establishing several 
bargaining rates for different classes is found in the practice in 
many trades of establishing minimum rates for various classes of 
work. This practice has not been designedly adopted in order 
to establish rates for the more efficient and thus to extend to 
them more fully the benefits of collective bargaining ; but it 
operates powerfully in this direction. In the Typographical 
Union, for example, linotype operators receive considerably 
higher pay than any other class of printers. The natural effect 
has been to bring into that branch of the trade the most skillful 
and expert workmen. A differentiation of the standard rate 
according to kind of work thus leads to a differentiation in the 
pay according to skill. The establishment of such a superior 
standard rate in one branch of a trade, by affording a standard 
of comparison, operates to give the superior men in other 
branches, a higher rate than they would otherwise receive. 

The prime function of the trade union is collective bargaining. 
No trade unions are possible in those trades where individual 
efficiency leads to extreme divergencies in pay. Trade unionism 
is strong in those trades where standardization is possible and 
varies directly with the power of the trade union to overcome 
the difficulties met in standardizing the workman. 



12 Johns Hopkins University Circular [184 

EXCLUSIVE AGKEEMENTS IN THE BUILDING TRADES. 
By F. W. Hilbert. 

The first record of an exclusive agreement in the building 
trades is found in Philadelphia in 1870. The Master Fresco 
Painters had an organization, and thinking that the journeymen 
fresco painters, if unionized, might help them to control the 
industry, they brought about an organization of their employees. 
For several years, the project was successful ; but the union went 
to pieces during the crisis of 1873. 

No further instances are discoverable until after the organiza- 
tion of the Carpenters' National Union, when exclusive agree- 
ments became common in that industry. In 1882 the Carpenters' 
Union of Washington wanted an increase of wages from $2.50 
to S3. 00 per day. They proposed to the principal builders of 
the city that they would obligate themselves not to work for 
" speculators, jerry builders or real estate men" if the builders 
would grant the increase. The builders came together, formed 
an association, and unanimously passed a resolution: "The 
Master Builders' Association hereby pledges itself, and its indi- 
vidual members, to support the Brotherhood of Carpenters and 
Joiners, and its members in their effort to secure 20 per cent, 
increase on the rate of wages paid last season. And further that 
the members of this Association shall pay that increased rate of 
wages, and shall employ none but members of the Brotherhood, 
provided the said Brotherhood do pledge themselves individually 
and as a body to the Association to be employed by none but 
master builders." The Association also promised to increase 
w r ages gradually until they should be 10 per cent, above the 
wages paid in any other large city. The following year the 
Master Carpenters' Association of New York formed a similar 
agreement with the Journeymen Carpenters' Union of that city. 

In 1886 the Carpenters' Union of Pensacola, Florida, formed 
an agreement with the Master Builders, and also with the manu- 
facturers of building materials. The material men annexed to 
the agreement a scale of prices which, they promised, would be 



185] The Economic Seminary, 1905-1906 13 

adhered to in all cases. Certain secret discounts of fixed amount 
were, however, to be given to those builders who were parties to 
the contract. The builders pledged themselves not to give out 
any piece work or sublet any part of their work, to purchase 
materials only from material men who were parties to the agree- 
ment, and to employ only such carpenters as were members of 
the local union. The union men on their part agreed to work 
only for such builders as were parties to the contract. This 
agreement was considered even stronger than the others men- 
tioned ; the prospective builder could not obtain union workmen 
and could secure materials only at a higher price than the master 
builder. He would, thus, the more readily give the contract to 
the master builder. 

These exclusive agreements became very common during the 
decade from 1890 to 1900, extending to nearly all the building 
trades. In New Castle, Pa., the painters agreed that the journey- 
men should not handle any materials not purchased by their 
employers. In St. Louis, they agreed to refer every real estate 
agent, general contractor, or owner, offering them work to some 
member of the Master Painters' Association, and in Worcester, 
Mass., that no member of their union should be permitted to 
estimate or contract for work at house painting for any person, 
not a member of the Master Painters' and Decorators' Associa- 
tions, unless he received at least $1.00 per day over schedule 
prices. 

In some exclusive agreements, provision is made for the 
journeymen's entrance into the employers' association, whenever 
he may become an employer ; as, for instance, in the painters' 
agreement in 1899 at Troy, N. Y. Some of them provide, 
however, that he can pass back again into the union ranks only 
after a stated interval of time. This had a tendency to dis- 
courage petty contracting. Thus, in New Castle, Pa., so many 
journeymen bricklayers went contracting and underbidding that 
the contractors refused to grant an increase of wages, until the 
union adopted a law that a member who withdrew for the purpose 
of contracting, could not return to the union until after a term 
of eight months, and then only by paying a new initiation fee. 



14 Johns Hopkins University Circular [186 

Journeymen were also required to pay the initiation fee of the 
Contractors' Association when they accepted a contract. 

In some cases the journeymen made large temporary gains by 
becoming a party to agreements of this kind. But objections to 
the exclusive agreements soon began to be made by unionists and 
their leaders. In 1896 the Plumbers of Memphis, Tenn. said 
of their experience : ' ' Everything worked very nicely until the 
Master Plumbers fined one of their members for violating one of 
their rules, and the firm would not pay the fine. Then we were 
notified that the firm was no longer a member of the Master 
Plumbers' Association. So to line up to our agreement we had 
to withdraw our men from the shop, which we did after giving 
the firm two days grace to settle with the Association." In 1899 
the organizer of the Plumbers said that, in the majority of in- 
stances, ' ' when an agreement of this kind has been entered into, 
trouble has occurred, caused in most cases by jealousies in a busi- 
ness way ; and, in some cases, I have found that after we have 
built up their organization through the force of an agreement 
with us, they have repeatedly used the power thus gained to work 
against the interests of the journeymen." 

Some national organizations of the building trades have abso- 
lutely prohibited such agreements. In 1901 the Carpenters 
provided in their constitution : "Unions cannot make agree- 
ments to debar their members from working for contractors or 
bosses other than those connected with the bosses' or builders' 
association." As it was found that building trade federations 
in certain localities furthered the use of the exclusive agreement, 
the next convention added this provision : ' ' Nor shall they 
affiliate with any central organization whose constitution or by- 
laws conflicts with those of the United Brotherhood." In 1902 
the General Executive Board of the Painters said that they 
would approve no scale of wages, gained through exclusive 
agreements, as they believed such contracts were a danger and 
menace to their prosperity. 

The Bricklayers, who are more strongly organized than any of 
the other building trades, were not so often tempted to enter 
upon these agreements. From the beginning, the national 



187] The Economic Seminary, 1905-1906 15 

office took a stand against them, and has always refused to sanc- 
tion any agreement which contained the exclusive clause. In 
1897 the union at Toledo, Ohio, made an agreement whereby 
they were to refuse to lay any common brick not made in Toledo. 
The local brick manufacturers agreed to give contractors employ- 
ing only union bricklayers a special discount per 1,000 bricks, 
and the contractors were to give the bricklayers an advance in 
wages. Although the agreement was carried unanimously by 
the local union, and signed by many contractors, the General 
Executive Board refused to approve it, saying: "We as an 
organization have no right to dictate what material shall be used 
in the construction of any buildings. Both owners and archi- 
tects have rights which we must recognize." 

As a concession to employers' associations, the General Execu- 
tive Board suggested that ' ' where master masons agreed to em- 
ploy only union men, the members of the local bricklayers' union 
should further bind themselves at all times to use every means 
and influence through committee or otherwise to prevail upon 
such parties to recognize none but union contractors. ' ' Another 
concession frequently made in agreements is to charge others 
than general contractors and builders five cents per hour above 
the local rate of wages for bricklayers. This about equals the 
charge of the master mason, and represents his profit. 

These concessions, however, were not sufficient for many local 
unions ; and so many exclusive agreements were sent for appro- 
val that in 1900, the General Executive Board in a circular 
letter to all locals declared : " Any union or locality that wants 
to build a fence around it so as to prevent International men and 
their employers from exercising their just rights will have the 
alternative either of taking down the fence, or else of with- 
drawing from the International Union. We are opposed to this 
' trust ' business right from the very start. For its introduc- 
tion and fostering now is merely the beginning of the destruction 
of the organization. ' ' The firm stand of the Executive Board 
was displeasing to same of the locals, and they appealed to the 
Milwaukee Convention of 1901. But the Executive Board was 
sustained by an overwhelming majority vote, and a resolution 



16 Johns Hopkins University Circular [188 

was adopted by the Convention that '* any contractor recogniz- 
ing the laws of a subordinate union and those of the Bricklayers 
and Masons' International Union in any locality in which he 
may be constructing work, should not be discriminated against 
or interfered with." 

Under pressure of master masons' associations which desired 
to check the growth of large construction companies, and were 
willing to give higher wages to the unions for aid, these exclusive 
agreements continued to be sent to headquarters for ratification. 
On one occasion, the Elizabeth local of bricklayers, at the insti- 
gation of the Master Masons' Association of that city, applied to 
the General Executive Board for permission to charge an extra 
five cents per thousand bricks when working for general building 
contractors or construction firms. It will be observed that this 
was the method recommended for some years by the Executive 
Board in dealing with others than mason contractors. In its 
communication, the Elizabeth local said : ' ' There are several 
contractors in our town who take the whole building, and hire a 
foreman for each branch of the trade ; and the master masons 
claim they cannot compete with these men as there is but one 
contractor to make his percentage, and he can consequently do 
the work cheaper than if he took but one branch of the trades. 
Therefore, they ask us to charge an extra five cents when working 
for these contractors so as to equalize them." The Executive 
Board refused this request ; and, in stating the reason of the 
Board for its decision, President Gubbins said : ' ' The demand 
of the building public for estimates for every branch under one 
responsible head is a growing one. The desire is to avoid too 
many divisions of responsibility in their construction, and the 
idea is to simplify matters for one particular head. We ourselves 
must admit that much friction of one kind or another is removed, 
and much valuable time gained. Then again the one headed 
system of responsibility removes the dissensions and disagree- 
ments formerly occurring between the several contractors which 
have been not only a loss to the owner, but also a great loss to 
employers in time and money. The system the Mason Con- 
tractors of Elizabeth seeks to perpetuate is doomed ; and they 



189] The Economic Seminary, 1905-1906 17 

might as well understand it first as last. Their only salvation 
is to affiliate their experience and knowledge with some other 
employer in some other particular branch of our industry, and 
work together for their common good as one man. We are in 
favor of charging five cents per hour to owners doing job-work, 
employing our members direct, but we cannot favor imposing an 
extra rate of wages upon general contracting firms and contract- 
ing companies. That would be the means of striking a blow at 
our own mason contractors who are associated with, and belong 
to general contracting firms." 

Thus, the officers of the four leading national unions in the 
building trades have fought against the exclusive agreement, 
and have practically stamped it out. No instance of its present 
use among the Bricklayers and only a comparatively few such 
agreements in other unions can be found. The places where 
they are found in the unions under consideration are small 
localities where the large construction companies do not compete. 
Moreover, the local unions are cut off from assistance by all 
four of these national unions should any trouble occur owing to 
the nature of the agreements. 



LABOR UNIONS WHICH DO NOT MAINTAIN APPRENTICE 

LAWS. 

By James M. Motley. 

Of the one hundred and twenty international unions having 
a total of 1,676,200 members, affiliated with the American 
Federation of Labor, about fifty international unions, with a 
combined membership of about 800,000 workmen, maintain no 
regular apprentice system. Four distinct classes of trades are 
represented in these fifty unions. 

In the first group may be placed those industries in which 
comparatively unskilled labor is employed. This class contains 
by far the largest number of trades which do not maintain regu- 
lar apprentice laws, for about thirty crafts may be thus classed. 



18 Johns Hop kins University Circular [190 

The group is typically represented by such unions as the 
Freight Handlers and Warehousemen, Hod Carriers and Build- 
ing Laborers, Hotel and Restaurant Employees, International 
Brotherhood of Teamsters, and International Protective Associa- 
tions of Retail Clerks. These trades, are in the main, recruited 
from those who, after serving a short term with their fellow 
workmen as instructors, readily obtain a sufficient knowledge of 
the trade to enable them to perform it in a satisfactory manner, 
after which they are received into the union. Apprentice quali- 
fications are not demanded of applicants seeking admission to 
these unions for the obvious reason that men of ordinary ability 
and physical endurance are, after a very short period of train- 
ing, sufficiently competent to perform the required work. 

The second class of trades in which no regular apprentice 
laws are maintained by the union, contains a very much smaller 
number than the preceding group, and is composed largely of 
the railway unions, such as the Order of Railway Conductors, 
Order of Railroad Telegraphers, Brotherhood of Locomotive 
Engineers, Brotherhood of Railroad Trainmen and Brotherhood 
of Locomotive Firemen. Some of these organizations are not 
affiliated with the American Federation of Labor. They repre- 
sent highly trained services, but advancement or promotion 
therein is made according to the ability displayed by the indi- 
vidual member or as there is actual need of men to fill vacant 
positions. In this manner those engaged in any of the industries 
contained in this class must serve a rigid and oftentimes a very 
long apprenticeship, though technically it is not so designated, 
since the terms demanded of beginners as well as any future 
promotion of employees, are matters not under the direction of 
the union, but entirely within control of the employers. This 
is made imperative from the nature and importance of the work 
to be performed. Each trade of the group represents activities 
which must, in order to properly protect business life, be executed 
with great promptness and care. For example, the telegrapher 
must be so accurate in transmitting his messages, and so prompt 
in reporting or dispatching his trains, that all those desiring to 
learn the trade must engage themselves, not simply for a stated 



191] The Economic Seminary, 1905-1906 19 

term of years, as is required of apprentices in most trades, but 
must serve until the} T have acquired sufficient skill to assure the 
employer that they are competent and may be safely trusted in 
responsible positions. Again, because of the heavy physical labor 
involved in the work, the membership of the International 
Brotherhood of Railway Firemen is recruited, in a large meas- 
ure, from men rather than boys, and consequently this union 
maintains no regular apprentice system. The constant intimate 
relations of the fireman with the engineer enables the former to 
gradually gain a practical knowledge of the trade duties of the 
latter, and it is in this manner that a majority of the engineers 
are trained. There is not the slightest opportunity for a boy to 
learn this trade, as an ordinary apprentice. A majority of the 
members in these unions began in an humble way with a rail- 
way company and have gradually worked their way up to their 
present positions. 

The trades of the third class consist of certain industries in 
which much machinery has been introduced and consequently a 
minute subdivision of the processes of production has followed 
to such an extent that the operation performed by each particular 
individual, instead of being complex or multiple as formerly 
when one person completed the entire product, has become a 
very simple act. Little if any skilled labor is required to per- 
form it. The Boot and Shoe Workers, the Carriage and Wagon 
Workers, and the Meat Cutters and Butcher Workers are typ- 
ical trades of this group. However, it must not be understood 
from the preceding statement that skilled workmen are not 
employed in industries of this class. On the contrary, at the 
present time a certain class of artisans engaged upon particular 
portions of the article — such as the cutter of the Boot and Shoe 
Workers, who must not only know how to handle his tools in a 
skillful manner, but must also be able to judge quickly in what 
way to cut this material of various sizes in order to secure the 
greatest number of pieces of correct dimensions, — have developed 
remarkable skill in executing their own part and are reckoned 
as high priced men, although possessing slight if any ability in 
making other parts of the same article. If, however, the artisan 



20 Johns Hopkins University Circular [192 

possesses sufficient creative ability and is adept in the use of his 
tools, he is able to perform the work in a satisfactory manner 
after, at the greatest, one year's time. Furthermore, it should 
be remembered that while machinery is extensively used in these 
trades, the old processes have not entirely been dispensed with. 
Thus at the present time, shoes are made, in some places, ex- 
clusively by hand ; in others almost entirely by machinery, while 
in still other factories the two methods are used conjointly. A 
beginner who wishes to learn the trade in a shop where only 
hand workers are employed, is required to serve a long term as 
an apprentice that he may become an all-round highly skilled 
workman ; but the boy who enters a large factory for the pur- 
pose of learning the trade finds an opportunity to learn but one 
or two parts of it and is not compelled to serve the long apprentice 
term. Certainly, it is true in the boot and shoe industry, and 
doubtless in all other trades of this group, that a very large per- 
centage of the articles produced are manufactured in large fac- 
tories in which the latest improved machinery has been installed. 
These plants disclose the real tendencies and conditions of the 
trade, and in such establishments the apprentice boy is no longer 
found. Speaking of a widely known wagon factory, one well 
acquainted with the conditions therein ventured the opinion that 
not one skilled workman was employed in the manufacture of any 
part of the wagon. So extensively has machinery been intro- 
duced that, to quote the exact language of the informant of the 
present writer, "the chief duty of the wagon maker in that 
factory is to carry material to and from the machines. Further- 
more, the wages of practically every employee is scarcely above 
that of the ordinary laborer, for in reality subdivision has been 
carried so far that those engaged therein perform a grade of 
work hardly above that of the laborer.' ' This is an extreme 
case, as many skilled workmen are found in the trade ; but the 
Carriage and Wagon Workers Union does not demand any special 
qualifications of its members other than that the applicant must 
be engaged at the trade and be of good moral character. 

The trades of the fourth class, while organized as trades and 
affiliated with the American Federation of Labor, should perhaps 



193] The Economic Seminary, 1905-1906 21 

be classified as professions rather than trades. The group in- 
cludes the Actors' National Protective Union and the American 
Federation of Musicians. Other organizations, such as The 
Teachers' Union of Chicago, might properly be placed in this 
group. 

It is evident, from the foregoing, that a majority of the unions 
in which apprenticeship is not a prerequisite to membership, 
are composed of members who perform comparatively unskilled 
labor. Ordinary intelligence and physical strength are the 
qualities chiefly desired. There have been little if any radical 
changes in the methods of production employed in these indus- 
tries, at least such as would demand a higher grade of skilled 
labor. Apprentice laws have never been enforced in these crafts. 
The twelve trades included in the second class, representing in 
the main railway unions, engineers and firemen and demanding 
highly skilled and well trained service, are also trades in which 
the unions have never maintained apprentice rules. ' Boys of 
tender age are not received, but men of mature strength are 
taken on and trained as the employer sees fit. The third class, 
which includes six different international unions, represents the 
trades in which the greatest changes in connection with the 
apprentice have taken place. In these industries a complete revo- 
lution in the methods of production has transpired. Machinery 
and subdivision have made it possible to abolish all apprentice 
requirements. However, it must be remembered that up to the 
present time the old methods formerly used by all employers in 
these trades, have not been entirely discarded by employers 
operating on a small scale. In the larger establishments the boy 
never gains a knowledge of the entire trade and may become an 
expert only in operating his machine, while in the smaller shops, 
less improved methods are employed and the beginner is required 
to serve a long apprentice term. 



22 Johns Hopkins University Circular [194 



THE EAKLY HISTORY OF THE CORPORATION 
TAX IN MARYLAND. 

By Hugh S. Hanna. 

The corporation tax was of slow development in Maryland, 
and, to a great extent, necessarily so because of the slowness with 
which the corporate form of industrial organization extended 
itself. Prior to the middle of the last century the granting of a 
corporation charter by the Legislature was a matter of consider- 
able ceremony ; such grants were relatively few and confined 
almost entirely to such enterprises as required special franchise 
privileges from the state as a condition of their operation, such 
as banking, canal, railroad and turnpike companies. 

Banks were the first of such corporations to be subjected to 
special taxation, and they were singled out because of reasons 
peculiar to such institutions. From the first establishment of 
state chartered banks in 1790 there had existed among a large 
class of people a feeling of hostility toward these moneyed institu- 
tions. This hostility, particularly strong in the agricultural 
section, which could expect little direct benefit from banks 
lending only upon short time notice, was fostered by certain 
periodicals of the day which professed to see in the concentration 
of the money power an instrument of the people's oppression. 
This party demanded, in lieu of the abolition of banks, the 
placing of a tax upon such institutions ; and beginning in the 
session of 1804 an active struggle was waged upon this propo- 
sition. The passage of a bank tax bill was finally secured in 
1813 by so framing it that it might appeal to the people as a 
means of furthering their growing demand for a public school 
system and for internal improvements. These various motives 
are shown in the text of the act, whose main provisions were as 
follows : (1). The banks of Baltimore City, together with certain 
banks in the western part of the state, were to undertake at their 
own expense, the completion of the National Road to Cumber- 
land. (2). Each bank was to pay into the State Treasury an 
annual tax of 20 cents upon each $100 of capital paid in or 



195] The Economic Seminary, 1905-1906 23 

thereafter paid in ; the proceeds of the tax to be kept as a 
separate fund for the establishment of a free school system. (3), 
The charters of the banks accepting this act were extended until 
1835, and in the meantime the state was to impose no further 
taxes upon the banks nor charter any other banking institution 
within Baltimore City. The offer was accepted by the banks 
without undue cavilling. The tax was low, and the road con- 
struction requirement were regarded as good investments. So 
good, in fact, that on several other occasions various banks vol- 
untarily offered to undertake the construction of other internal 
improvements upon similar conditions. 

In pursuance of its promise, the state made no attempt to tax 
the banks until 1835. In that year, in return for a general 
extension of charter, the State resumed the right of chartering 
new banks in Baltimore City and of imposing new bank taxes. 
This new taxation took the form of a charge upon the charter 
privilege — the familiarly known bank bonuses in amount varying 
from \\°/o to 3f % upon the capital stock of each bank whose 
charter was extended or newly granted. The twenty-cent school 
tax was continued in all cases. 

The annual tax of 20 cents per $100 laid upon banking capital 
was a true corporation tax, the first, and for a long time the only 
example of its kind in Maryland. The charge known as a 
' * bank bonus ' ' was not strictly a corporation tax but rather 
what has been called ' ' a license fee charged for the privilege of 
incorporation or of increasing the capital stock of a company " 
(Seligman). The taxing of banks, however, was not used as a 
precedent for the taxing of other corporations. Banking for 
many years lay under its early odium. It was regarded as a 
necessary institution but as an unproductive one, whose profits 
were out of proportion to its services, which needed restraint 
rather than encouragement, and from which, therefore, a con- 
tribution could be exacted with peculiar justice. Tentative 
efforts were made to bring insurance companies under the same 
taxing rules as applied to banks, but in only one instance was 
this done. 

The internal improvement enthusiam of the years from 1825 



24 Johns Hopkins University Circular [196 

to 1840 brought into being a score or more of large joint stock 
companies, and gave the first real opportunity for an extensive 
application of the corporation tax. No attempt, however, was 
made to turn the opportunity to such an account. The policy of 
the Legislature was to encourage as far as possible all improve- 
ment undertakings, and, so far from burdening them with extra 
taxes, to relieve them of all unnecessary expense. The only 
exception made was in the case of the Baltimore and Washing- 
ton Branch of the Baltimore and Ohio Railroad upon which a 
heavy tax was imposed, but the reasons for such an exception 
do not appear. The tax indeed was in the nature of an after- 
thought. The original act authorizing the road made no refer- 
ence to a tax of any kind. It was only in a later revision of 
the act that the tax provision was inserted, in compensation 
apparently for the surrender by the state of certain privileges 
previously reserved. In any case, this example had no influence 
in the chartering of other improvement companies. 

The first extension of the corporation tax to a whole class of 
corporations, other than the banks, took place in 1839, when an 
act was passed subjecting foreign insurance companies doing 
business in Maryland to a percentage tax upon the premiums 
received by them. The purpose of the act was only incidentally 
financial, the main incentive to its passage being the patriotic 
desire to foster the home insurance companies. The mere fact 
that the objects of the act were corporations had little or nothing 
to do with the imposition of the tax. 

Thus up to 1841 there was little to indicate any general 
recognition of the corporation as a peculiar species of taxable 
property, deserving of special treatment. But, nevertheless, the 
corporation was rapidly becoming a dominant factor in the 
economy of the State, and its relation to the public finances was 
becoming a matter of discussion. By 1841 the internal improve- 
ment movement had definitely collapsed. The State Treasury 
was seriously involved therein and a reorganization of the revenue 
system became imperative. In this reorganization corporation 
taxation played a part, entering indeed upon a distinctively new 
period in its history. 



197] The Economic Seminary, 1905-1906 25 

WOMEN IN THE TKADE UNION. 
By T. W. Glocker. 

The unionization of the female worker has been retarded by 
many difficulties. One serious obstacle is the refusal of women 
themselves to join the union, because of repugnance to its bellig- 
erent methods, or through fear of retaliation by employers. 
Women are also indifferent, or opposed to the union because of 
the possibility of marriage. Unionism means a present sacrifice 
for a possible future gain ; and this sacrifice, the woman who 
considers her employment to be only a temporary makeshift, may 
refuse to undergo. Marriage, also, by causing frequent changes 
in the personnel of the female employees, multiplies greatly the 
difficulty of organizing them. 

If women have completely absorbed one branch of a trade, 
and hence do not compete with men for work, their unionization 
is desired, not opposed, by their male co-employees. As early 
as 1832, at a great mass meeting of workmen, held in the State 
House Yard, Philadelphia, one afternoon in June of that year, 
the following resolution was adopted : — 

" And "Whereas in the female branches of sewing, making 
clothes, etc., there is much privation, want, and suffering in 
consequence of the lowness of prices which they receive for their 
daily toil, therefore 

" Resolved that we highly disapprove of the speculation which 
is carried on upon their virtuous and honest labor. 

" Resolved that the ladies of Philadelphia be recommended to 
adopt such measures, as may secure to their sisters in humanity 
a fair compensation for their industry. ' ' 

On several occasions when the female hat trimmers' local of 
Danbury, Conn., has demanded better working conditions, the 
hat makers and finishers have struck in sympathy ; and, by 
their co-operation, the strike has been won. But a national 
union oftentimes will not force the unionization of a branch of 
trade monopolized by women. The United Hatters of North 
America will not, for example, admit the female hat trimmers, 



26 Johns Hopkins University Circular [198 

of whom only a few have been organized, and so will not pledge 
themselves to refuse the label to those factories where non-union 
trimmers are employed. The attitude of the trade union is, as 
the official of one organization expressed it to the writer : ' ' Let 
such branches of the craft first organize upon their own initia- 
tive, and so demonstrate that unionism is possible among them. 
The attempt of a national union to force matters might result in 
its own destruction. ' ' As against this, the consideration is some- 
times urged that the journeymen of a trade will find the co- 
operation of their female co-workers useful in case of a strike. 
But, as an officer of the Amalgamated Lace Operatives of 
America, who was asked why the female lace menders and 
finishers had not been unionized, naively explained: "The 
women, though unorganized, usually strike in sympathy with 
the men. So it would be no additional advantage to have them in 
the Union." 

Various policies have been pursued by the journeymen of a 
trade, when women compete with them for the same work. 
Some organizations, as for example the Cigar Makers' Inter- 
national Union during the first few years of its existence, have 
refused absolutely to admit their female competitors. But, while 
it is possible to exclude women, when employed wholly in one 
branch of a trade, such a policy is suicidal when they compete 
keenly with men for employment ; and, in such cases, national 
unions, have, sooner or later, been forced to organize them. 
When women are, at last, admitted, opposition to them some- 
times continues in an effort to limit them to certain work. For 
example, with the introduction of the sewing machine, women 
using the machine were employed as scabs to defeat strikes of the 
Journeymen Tailors, and a large proportion of clothing in New 
York City came to be made by female labor. At the National 
Convention of Journeymen Tailors in 1866, the competition of 
women was discussed ; and,, though no conclusive action was 
taken, the locals were strongly recommended to admit them to 
membership. Females were, however, to be confined as much as 
possible to the ' ' custom department ' ' ; and only those working 
in that department were to be allowed to join the union. 



199] The Economic Seminary, 1905-1906 27 

Finally, it is the general policy of the trade union to demand 
that women be paid the same wages as men for the same work. 
If women perform this work as efficiently as men, such a demand 
seems just. But often women possess inferior skill. Sometimes, 
also, employers appear to prefer male to female employees when 
forced to pay the same wages to both. The enforcement of this 
policy has, therefore, caused, in some cases, the discharge of 
women engaged at certain kinds of work. 

When women are admitted to membership by national trade 
unions, they are organized, if possible, into separate locals. 
Local unions composed wholly of women undoubtedly existed 
at a very early date. The Journeymen Cordwainers' Society of 
New York City — a union of boot and shoe workers — organized 
about 1833 a Ladies' Branch, which, however, came together 
only as occasion demanded. The female shoe stitchers of Lynn 
formed in 1846, a Stitchers' League, which was wrecked after a 
short time by a few malcontents. In 1855, the stitchers of 
Lynn secretly re-organized for several years ; and it was these 
same stitchers of Lynn who, in 1883, were the first of the boot 
and shoe workers to apply for a charter from the Knights of 
Labor. They were organized as Daughters of Labor Assembly, 
No. 3016 ; and, in accordance with the policy of the Knights of 
Labor were allowed to admit, not only stitchers, but also women 
working at other trades. The women working in the collar factories 
of Troy, organized, about 1864, a Collar Laundry Union with a 
membership, which, at one time, reached about four hundred. 
Several years later, the Female Cap Makers' Union, the Woman' s 
Typographical Union and the Female Parasol and Umbrella 
Makers' Union were formed in New York City. In 1874, the 
Tailoresses of New York City created a union independent of 
the journeymen tailors, but succeeded in organizing only about 
fifteen hundred out of a possible twenty thousand employed in 
the ready made clothing industry of that city. In 1870, the 
National Lodge of the Daughters of St. Crispin was formed ; 
and subordinate lodges of stitchers were organized in various 
places. In the same year, a convention of the various women's 
unions in New York State was held at Cooper Institute in New 



28 Johns Hopkins University Circular [200 

York City, and an attempt made to form a State Working 
Women's Association. But the organization died with the ad- 
journment of the convention. The depression which began in 
1873, wrought, however, the destruction of all women's organi- 
zations in common with the general wreck of most trade unions 
throughout the country. 

Of late years, the movement to form women's unions, as com- 
pared to the growth of similar organizations among men, has 
proceeded but slowly, though with greater success in the West 
than in the East. In Chicago, an overwhelming majority of 
workers in twenty -six different trades, with a total aggregate 
membership of possibly thirty-five thousand, have been organized. 
The list of unions includes the Lady Cracker Packers, Waitresses, 
the Laundresses' Union, the Paper Box Makers, the Scrub- 
women's Union, and embraces, with two important exceptions,— 
namely the servant girls and the stenographers, — almost every 
line of feminine industry in Chicago. 

When, as in the case of the boot and shoe stitchers, the over- 
all workers and the hat trimmers, all employees in one branch of 
a craft are women, the problem of organizing them into a national 
trade union, together with the journeymen, primarily becomes a 
division into locals, according to the character of employment. 
It has been found necessary, however, to create in small places 
mixed unions of both sexes. Sometimes, also, when the interests 
of the male and female branches of a trade are closely interwoven, 
it is convenient to organize them together in one local even in 
large cities. Thus, while the bookbinders have formed a women's 
local of stitchers in New York City, yet it has been found neces- 
sary to organize the female stampers of New York into the same 
union with the gold layers. 

When women compete with men for the same work, a mixed 
local is usually formed in order to better enforce the payment to 
them of the same wages as men, and to maintain other limita- 
tions upon their labor. In 1869, the International Typograpical 
Union granted a charter to the female compositors of New York 
City. But, after several years' experience, it was found that the 
women were working for a different scale from the male printers. 



201] The Economic Seminary, 1905-1906 29 

The charter was, therefore, revoked ; and the Typographical 
Union has never since that time attempted to form separate 
local unions of women. One notable exception to the general 
trade union policy is found among the Amalgamated Meat Cut- 
ters and Butcher Workmen. The butchers organize the men 
employed in the large packing houses into locals according to the 
department in which they work. The female employees, scat- 
tered throughout the various departments, are, however, at 
Chicago, South Omaha, and other large packing centers, gathered 
into one local, known as the "Women's Union." 



JURISDICTIONAL DISPUTES IN BREWERIES. 
By S. Blum. 

The perfect form of industrial union has for its ideal the for- 
mation into one organization of all the crafts which make up 
the industry. Thus the Brewery Workmen and the United 
Mine Workers claim jurisdiction over all men working in or 
around the brewery, or mine, regardless of dissimilarities in the 
technique of work or in the organizations of the separate crafts. 
There are certain other unions with industrial tendencies which 
have not succeeded in unifying all the men in the industry ; 
these may be termed amalgamations. The craft union or trade 
union simply attempts to organize all men in the trade irrespec- 
tive of the industry in which they work. The industrial is a 
unification based upon location, the trade union is one based 
upon technique. These forms are antagonistic and have resulted 
in jurisdictional controversies. 

The Brewery Workmen organized a national union in 1887. 
At this time none of the unions, with which it has since had dis- 
putes, except the Coopers, had effected national organizations. 
The first dispute was with the coopers. The coopers demanded 
jurisdiction over all cooperage work around the breweries, to in- 
clude alike new work and repair work. In the convention of 



30 Johns Hopkins University Circular [202 

the American Federation of Labor of 1897, the coopers com- 
plained that the Brewery Workmen had been repeatedly upheld 
in the repair and examination of beer packages and that the 
coopers claimed the right to perform this work. They further 
alleged that an unjust boycott had been placed by brewery 
workmen on ale and porter coming from Albany and Troy. 
During the year so many disputes had taken place between the 
two organizations that the American Federation of Labor re- 
quested the two organizations to form a joint conference board 
to settle the matter in conflict. This conference committee was 
ineffectual, and in the following year the president of the Amer- 
ican Federation of Labor appointed a committee to hear evidence 
and to make recommendations as to which unions should have the 
right to repair loose cooperage in breweries. This committee 
recommended that, when there was sufficient cooperage in the 
breweries to require the employment of a cooper, these workers 
necessarily belonged to the coopers' union. When the cooperage 
work did not require the entire time of a cooper, all men who 
did the work should belong to the Brewery Workmen. 

In spite of this decision, the brewery workmen refused to 
surrender their jurisdiction over to the coopers. The coopers fur- 
ther protested that in some factories the tightening of hoops on 
loose cooperage packages was being done by members of the 
Brewery Workmen. This contention was not upheld, as the 
specified work was implied in the decision of the year before ; 
but it was held that all repairing and all new work should be 
done by the coopers. Thus the case stands. In the conventions 
of 1901 and 1902 the protests of the coopers continued, but the 
decision has remained unchanged. The brewery workmen seem 
to be gradually forcing the coopers out of the business either by 
assimilation or by putting new men in their places. The decision 
of the American Federation of Labor in this case has not been 
influential in deciding the contest. 

Though the dispute with the coopers was the first in which the 
Brewery Workmen were engaged, it is by no means the most 
important either in the number of men involved nor in the vigor 
with which it has been fought. In 1896 the National Union of 



203] The Economic Seminary, 1905-1906 31 

Steam Engineers was organized and affiliated with the American 
Federation of Labor ; and two years later the Stationary Fire- 
men organized on national lines. Almost immediately, a juris- 
dictional controversy arose between these unions and the Brewery 
Workmen. It is important to consider the controversy in some 
detail as it brings out very clearly the principles involved and 
the dangers of these conflicts. In an agreement between the 
Engineers and Brewery Workmen in 1899, it was agreed that 
engineers working in breweries should be required to join the engi- 
neers' union. This agreement was not lived up to, as the Brewery 
Workmen not only retained engineers as members but continued 
to admit them into their organization. In 1900 it was reported 
that brewery workmen admitted engineers, firemen, machinists, 
team drivers, coopers and painters as members of their union, 
thus preventing them from joining the legitimate unions of their 
trade. These complaints and important struggles led to a deci- 
sion in all these matters by the grievance committee of the 
American Federation of Labor. 

Despite decisions to the contrary, the Brewery Workmen con- 
tinued in their attempts to assimilate the firemen and engineers. 
The struggle reached a climax in St. Louis in 1903. According 
to a decision rendered at the 1902 convention of the American 
Federation of Labor, it was provided that the engineers and 
firemen should have control of their trades and that a committee 
from the three organizations and the American Federation of Labor 
should draw up an agreement for the adjustment of future difficul- 
ties. This was done in January, 1903. Immediately the Brewery 
Workmen called a special convention, and so changed the agree- 
ment as to make it meaningless. At the Toronto meeting of the 
executive council of the American Federation of Labor the legal- 
ity of the decision of the Federation was denied by the Brewery 
Workmen ; but their contention was not sustained. At the same 
meeting the Firemen and Engineers demanded that the charter 
of the Brewery Turkmen be revoked. The executive council 
denied this demand but stated that ' ' the causes of the constant 
strife by strikes and lockouts are due primarily to the unwise 
course pursued by the United Brewery Workmen's International 



32 Johns Hopkins University Circular [204 

Union in rejecting and acting in violation of the advice and 
decision rendered as the result of the experience of the labor 
movement." This admonition had no effect, and an organizer 
of the American Federation of Labor was sent to St. Louis to 
effect a settlement. 

The Engineers and Firemen stated that for some time prior 
to August 25, 1903, they had a majority of the men in the 
trade. They attempted to put agreements into force with the 
St. Louis Brewers' Association but were refused. The An- 
heuser-Busch Brewery Company suggested that a meeting be 
held to meet the representatives of the two unions, and if the 
Brewers' Association refused to do business with the unions the 
independent breweries would. When the time set for the meet- 
ing arrived the Engineers and Firemen found that the Brewery 
Workmen were already in conference with the Association. The 
next day representatives of the Engineers and Firemen visited 
the individual breweries and demanded that the agreement be 
signed. When this was refused, the men were called out in the 
engine and boiler rooms, and their places were taken by mem- 
bers of the United Brewery Workmen. The Brewers' Association 
took the position that the Brewery Workmen did not consider 
the decision of the American Federation of Labor as final, and 
that until the controversy was settled once and for all, the Asso- 
ciation would stand neutral. The Association finally agreed 
to do business with the engineers and firemen, provided the 
American Federation of Labor would guarantee to fill the places 
of the Brewery Workmen in the event of a strike by them. The 
American Federation of Labor, of course, refused to guarantee 
this, and in consequence no agreement was entered into by the 
Association with the Engineers and Firemen. 

No settlement having been made either of the St. Louis con- 
troversy or of the general question of jurisdiction, the case was 
continued in the 1904 convention of the American Federation of 
Labor. The Executive Council's recommendations, which were 
concurred in by the grievance committee and by the Convention 
itself, included not only firemen and engineers but also teamsters, 
who in the meantime had formed a national union. The com- 



205] The Economic Seminary, 1905-1906 33 

mittee decided that all past agreements and decisions be replaced 
by the following provision which was to become the basis for 
working agreements between the organizations : 

"All brewery employees now [1904] members of the United 
Brewery Workmen's Union may remain such provided that all 
firemen, engineers and teamsters affiliated with it might with- 
draw without prejudice to themselves. In the future, Brewery 
Workmen are not permitted to admit any of the above mentioned 
trades into their organization, on the other hand these trades are 
supposed to conform to the laws, rules and regulations made by 
the organization to which the majority of the employees of the 
brewery belong. ' ' 

It is notable that this decision has not strengthened the 
position of the Engineers and Fireman to any greater extent 
than the decision of 1899. Certainly the end of the controversy 
is not yet in sight. 

We have gone into the details of the dispute because it brings 
out clearly certain principles involved in all important juris- 
dictional controversies : 

(1) Jurisdictional controversies lead to scabbing. 

(2) That in deciding disputes the point at issue is to find the 
legitimate union in the trade and it is thus a phase of the union 
shop controversy. 

(3) That there are no efficient means yet devised to adjust 
important controversies satisfactorily. 



THE KETIREMENT ASSOCIATION OF THE LETTER 
CARRIERS. 

By J. B. Kennedy. 

The National Association of Letter Carriers of the United 
States is composed of letter carriers in the employ of the United 
States Government. Organized in 1889, the Association has 
as its primary purposes, first, to unite all letter carriers in the 
United States, second, to secure their rights as Government 



34 Johns Hopkins University Circular [206 

employees, and third, to conduct a national benefit association. 
The payment of insurance against death has met satisfactorily 
the needs of letter carriers, but a feeling has existed for some 
time that the association ought to give protection to members 
who have become incapable, on account of advancing years, of 
performing the duties of letter carriers. 

At the Denver Convention, held in 1902, the National Asso- 
ciation organized a ' ' Retirement Association ' ' for the support 
of its aged and disabled members. Under the original law, 
which went into effect on January 1, 1903, the Association 
issued retirement certificates to members in the sums of $500, 
$400, $300, and $200 at monthly premiums of $6.70, $5.35, 
$4.00, and $2.70 respectively. On retirement, after having paid 
thirty annual premiums, or their equivalent, a member was 
entitled to receive annually the amount of his certificate. The 
retirement might also take place after thirty years' service, 
or after thirty years' membership in the Association, or after 
the age of sixty-five had been reached, provided ten annual 
premiums had been paid. This "ten annual premium" con- 
cession was for the benefit of the old men whose circumstances 
would not allow them to pay the sum of thirty years' premiums. 
The concession was to be only for a period of ten years. 

Provision was made that, after January 1, 1906, any member 
of the Retirement Association who should serve as a letter carrier 
or should continue a member for a stated term of years, and who 
should become permanently incapacitated, mentally or physi- 
cally, for any kind of remunerative labor before thirty years' 
service or before attaining the age of sixty-five, should receive 
annually from the retirement fund a certain per cent, of the 
face value of his retirement certificate. The amount was pro- 
portioned to the years of service. For five years' membership 
such a member received fifteen per cent. ; for ten years, thirty 
per cent. ; for fifteen years, forty-five per cent. ; for twenty 
years, sixty per cent. ; for twenty-five years, seventy-five per 
cent. 

Members of not less than five years' standing might, after 
ninety days notice to the chief clerk, withdraw from the Associa- 



207] The Economic Seminary, 1905-1906 35 

tion ; and in such event, they became entitled to receive seventy- 
five per cent, of the annual premiums paid to the Association. 
Also in case of death within two years of retirement and prior 
to the payment of not more than twenty -four monthly install- 
ments of pension, the Association agreed to pay to the widow or 
children the annuity provided in the deceased member's certifi- 
cate until the amoimt paid should aggregate seventy-five per 
cent, of all premiums received by the Association. 

The original plan was a failure. In it, business principles 
were sacrificed for fraternity. Relief had been provided for the 
old men particularly, but very few even of these took advantage 
of the opportunity. The young men refused to enter, because 
the favorable rates to old men placed a heavy burden upon the 
younger members. The report of the chief clerk to the Syracuse 
Convention in 1903, showed that up to September 1, 1903, only 
eighteen retirement certificates had been issued, of which thirteen 
were for $500, two for $300, and three for $200. The average 
age of membership at entrance was fifty-three and the average 
length of service, twenty-two years. The total receipts of the 
retirement fund were only $380.90. On September 1, 1905, 
the total number of certificates issued had reached twenty-five, 
with only nineteen outstanding, while the retirement fund had 
increased to $2,839.88. 

The originators of the Retirement Association were forced to 
abandon their experimental fraternity scheme and to formulate a 
plan based more nearly upon business principles. Consequently, 
at the Portland Convention in September, 1905, Chairman 
Goodwin and Chief Clerk Wilson of the Retirement Committee 
proposed a new plan. 

Under the new law, which becomes operative on January 1, 
1906, the Retirement Association was authorized to offer insur- 
ance against disability and insurance against old age. The 
members of the Association are, therefore, divided into two 
classes — ' ' annuity members ' ' and ' ' disability members, ' ' but 
those duly qualified may hold both annuity and disability certifi- 
cates. Any member of the National Association of Letter 
Carriers may become an "annuity member," but only those 



36 Johns Hopkins University Circular [208 

under sixty-five years of age, and in good physical condition 
may become ' ' disability members. ' ' A member retiring from 
the carriers' service ceases to be entitled to disability relief ; on 
the other hand, retirement from carrier service does not affect 
the right of a member to an annuity. The plan provides for 
annuities of one, two, three, four and five hundred dollars to be 
paid after a certain age. 

The cost of an annuity under the new law depends upon two 
factors : — (a) The length of the period between the date of entry 
and the commencement of the annuity, (6) The life expectancy 
at the age when the annuity begins. For example, a member 
twenty years of age, who desires to begin drawing his annuity at 
fifty, must pay an annual premium of $55.92 for each $100 of 
annuity. Entering at forty years of age and desiring to begin 
drawing his annuity at sixty- five, he would be required to pay 
annual premiums of $22.92 for each $100 of annuity. 

The disability certificates guarantee an indemnity of eight 
dollars per week for loss of time resulting from disability caused 
by accident or disease. No more than twenty weeks' disability 
benefit may be paid during any one year. The benefit may be 
drawn at one time or at different times during the year. Should 
a member, after entry into the Association, become permanently 
disabled by any chronic disease that may, in the judgment of the 
board of directors, cause a permanent drain upon the funds of the 
Association, the said member is to receive the disability allowance 
for twenty weeks, after which his certificate is to be cancelled. 
The disability feature as thus defined is not, technically speaking, 
disability insurance, but rather a sick benefit. There are two 
rates of assessment for the support of the disability benefit. Up 
to fifty years of age all members pay fifty cents per month, and 
all over this age pay seventy-five cents per month, but no one 
over sixty-five years of age may enter the Association. 

The letter carriers have also attempted to secure the aid of the 
government in providing an old age pension. At the Portland 
Convention held in September, 1905, a plan was approved under 
which the Post Office Department of the United States is re- 
quested to grant extended leave of absence to ' ' superannuated 



209] The Economic Seminary, 1905-1906 37 

or permanently impaired ' ' carriers on condition that they accept 
forty per cent, of their regular salary, while retired, and that 
they pay the remaining sixty per cent, to the senior substitute in 
the office. Under the conditions of this plan, the applicant for 
retirement must submit himself to the board of examiners who 
shall, after a physical examination by the physician of the board, 
determine his eligibility for retirement. The officials claim that 
this plan would remove the detrimental effect which the employ- 
ment of old men has upon the efficiency of the service. 



THE LABEL OF THE UNITED HATTERS OF NORTH 
AMERICA. 

By E. R. Spedden. 

The board of directors of the Hat Finishers' Association and 
the Hat Makers' National Union met in 1885, and adopted a 
union label which they called ' l The Label of the United Hat- 
ters of North America." The label is rectangular in shape, 
printed on buff paper with perforated edges. It portrays the 
clasped hands of brotherhood, equality and justice below a figure 
of the globe of the world. It has the inscription, " The United 
Hatters of North America." The printing and emblems are 
arranged in concentric circles ; that of the printing is without 
the circle containing the emblems. 

An uniform method of attaching the label is insisted upon by 
the union. The label is sewed under the band, and the threads 
of the bow must pass through the label to prove that the label 
is authentic, and not affixed to hats after they have been made 
by non-union labor. The label is not allowed on "knock- 
downs ' ' and is intended to represent good workmanship as well 
as union labor. 

The label of the Hatters is gradually gaining a greater vogue. 
In the half year from December 1, 1896, to May 31, 1897, over 
3,000,000 labels were used. In 1901 it was reported that the 
organization was using over 1,000,000 each month. The secre- 



38 Johns Hopkins University Circular [210 

tary of the union wrote in August, 1900, that over 25 non-union 
factories had been unemployed since 1896, the result of the 
influence of the label. The manufacturers declared in 1898, 
that they believed that over 95,000,000 labels had been used 
and the demand for goods bearing the label was steadily on the 
increase. Up to 1901, over 133,000,000 labels had been put 
into circulation. The president of the Hatters, in an address 
before the New York Convention of 1903, stated that the label 
of the United Hatters had ' ' found its way to all parts of the 
world in 157,522,694 hats." In January, 1904, 2,000,000 
labels were being used each month, and about 80% of the hat 
manufacturers in this country were using the label on their 
goods. 

The Hatters have adopted a vigorous policy of advertising the 
label. Thus match-safes bearing a likeness of the label are given 
away for a certain number of union labels, and in labor parades 
the label is conspicuously displayed. In 1899 an official was 
appointed in New York State, solely for the purpose of adver- 
tising the label and prosecuting all cases of infringement. One 
of the results of his work was to detect and prevent the counter- 
feiting of the Hatters' label by a firm, which admitted its guilt, 
turned 55,000 labels over to the organization, unionized its fac- 
tory and consented to pay $200 damages. About $30,000 a 
year has been spent in advertising the label since March 15, 
1896, when the present form of the Hatters' label first appeared. 

The label is not used on straw, cloth, wool and silk hats. The 
cap makers have a label of their own, and in silk hats the label 
of any uni6*n does not appear, though the silk hat makers have 
a union of their own. The largest manufacturers who do not use 
the label are the Stetson and Knox companies. These factories 
are non-union, and as such are not given the label, though mak- 
ing a high-class product. This seems to be one of the difficulties 
of the Hatters in the use of their label. Many factories, some 
employing all union men, do not use the label either because they 
do not care to commit themselves as to their attitude towards the 
union, or because their trade makes no demand for the label. 

The union's regulations provide that no manufacturer who 



211] The Economic Seminary, 1905-1906 39 

1 ' gets up caps and brims, that is brims and crowns sewed and 
pasted together, shall under any circumstances be allowed the use 
of the label." The minimum wage of $18 per week for a young 
man, sanitary conditions of labor and a normal working day are 
requisite for the use of the label. Only union shops are allowed 
the label, especially strictly union finishing departments. Any 
union shop having, at least one member in good standing may use 
the label. The label laws form a division in the constitution and 
are minute in their specifications. 

The Hatters maintain exclusive control of their label. No 
employer is allowed to share in any way in its expense. The 
object of such action is to keep the label entirely under the con- 
trol of the union, and to maintain it apart from any influence 
outside of the Hatters' organization. ' ' The label shall not be 
removed from any factory under the jurisdiction of the United 
Hatters of North America without the consent of the general 
executive board" (Art. xin, sec. 2, Constitution of 1900). 
This provision makes it possible for both sides to be heard in case 
of any dispute and removes from the jurisdiction of any local 
board any action which might be the result of hasty or biased 
opinion. The label is of vital importance to the national union 
and its use must be subject to the scrutiny of the central body. 

Great difficulty has been experienced by the Hatters in pre- 
venting the counterfeiting of the label. Forty States and 
Territories have adopted laws protecting the trade-union label as 
a registered trade mark. Any infringement is usually punished 
as a misdemeanor and the parties guilty of counterfeiting are 
liable to suit for damages. The unions must register their 
respective labels with the Secretary of State either in copy or in 
fac-simile. The officers of the Hatters' organization are con- 
stantly on the watch for any case of infringement in the form of 
counterfeit labels, improperly attached labels, labels being used 
on ' ' knockdowns, ' ' or any use of the Hatters' label on goods 
other than those finished by the United Hatters. 

All sorts of devices are tried by the jobbers to take advantage 
of the label. Goods are bought from the manufacturers and, 
when they arrive, they are often stored away and sold as con- 



40 Johns Hopkins University Circular [212 

taming the label. When a union man turns down the sweat 
band and does not find the label, the jobber or retail man has 
many apologies to offer. The stitching generally gives the clue 
to any fraud and for this reason, the Hatters demand a uniform 
method of attaching the label. A so-called "French Label" 
has worked some ill effects upon the Hatters. This label pur- 
ports to be the emblem of a French organization and is found in 
so-called ' ' imported ' ' hats. At present the Hatters are active 
in their agitation against this label and are meeting with 
reasonable success. 

An interesting phenomenon in connection with the label is the 
sectional demand for goods bearing it. Pennsylvania is perhaps 
the State where the largest sale of label goods occurs in the East. 
This is undoubtedly due to the strong union among the miners 
and a resultant trade union sympathy and fraternal relation with 
other forms of labor organizations. The west and middle-western 
districts also reveal this tendency. In the south the label has 
comparatively little influence upon sales. The Hatters are, 
however, vigorously canvassing that section, and with good 
results. 

The object of the label among all unions is to control primarily 
the trade, and especially to educate the laboring people to pur- 
chase only union goods. The Hatters place great emphasis upon 
these facts. The ' ' boycott ' ' has always been an instrument of 
doubtful expediency, and the label has been gradually substituted 
for the ' ' boycott " as a controlling force. ' ' Government by 
injunction" has always been extremely unpopular, and strikes 
are dangerous experiments. As a substitute for these, the label 
has been effective, by influencing the trade, and in aiding the 
Hatters in many of their disputes with capital. 



213] The Economic Seminary, 1905-1906 41 

EUROPEAN METHODS OF CONTROL OVER RAILWAY RATES. 
By W. H. Buckler. 

The treatment of railway companies by the chief European 
states has assumed four different forms : 

(1). In Germany, Austria, Hungary, Russia, Italy, Belgium, 
and Switzerland, the State has either built the railway lines, or 
has bought out the large companies and now works their lines 
itself. There may be an occasional exception, such for instance 
as the Sardinian Railway, in which an independent company still 
survives. But the seven countries named have on the whole 
committed themselves to State ownership and operation. 

(2). In Spain and Holland the State has reserved the right 
to modify the tariffs of the railway companies on condition that it 
shall compensate the companies for any loss of net earnings 
resulting from an enforced reduction of rates. 

(3). England has constituted a special tribunal, the Railway 
and Canal Commission, before which plaintiffs alleging undue 
preference, wrong classification, unreasonable rates, or any other 
contravention of the many Railway and Canal Traffic Acts, can 
sue the offending company and obtain damages or other redress. 

(4). In France, the principal railway lines, the ground occu- 
pied by which belongs to the State, have been conceded for a long 
term of years to six great companies ; these have the privilege of 
proposing the tariffs, while the State exercises the right of accept- 
ing or rejecting such proposals, and without its approval no rate 
can legally be charged. 

The comparative merits or defects of the system of State 
ownership can only be fairly weighed with reference to the 
circumstances of a particular country. For instance, the superior 
military effectiveness of State railways, in consequence of which 
Germany is able seriously to threaten the French frontier, is an 
advantage that would not count in the United States. And 
there are other arguments by which Austria, Hungary, Belgium, 
and, more recently, Switzerland and Italy, were led to adopt 



42 Johns Hopkins University Circular [214 

their respective plans of State ownership, but which in this 
country would have no weight. 

The Spanish and Dutch systems have never been made effective, 
and the right of those governments to reduce rates is one by 
which the companies have remained practically untouched ; so 
that lessons in the art of public control are scarcely to be derived 
from that source. 

The English method resembles our own, and has proved to 
have similar defects. It is slow, expensive, and ill adapted to 
deal with the enormous mass of detail necessitated by the railway 
tariffs of a busy industrial country. The last (16th) report of 
the Railway and Canal Commissioners shows a list of 103 cases 
only tried or pending during the previous year. Under certain 
conditions a rate cannot go into effect without the consent of the 
commissioners, but no official mechanism exists for validating 
all rates. The Commission merely pronounces a certain small 
number of rates to be invalid, provided the shippers thereby 
affected take the trouble of disputing them. It is true that 
the English companies are also bound by special ' ' Rates and 
Charges Acts ' ' passed by Parliament, but the maximum tariffs 
fixed by these are of little value, since maximum rates soon come 
to have a mere antiquarian interest. If then we are seeking a 
plan of thorough regulation, England has not much to teach. 
We already possess in the Interstate Commerce Commission 
something analogous to the English system, and the reports of 
that Commission have demonstrated the defects under which such 
a system labors. 

The French mode of controlling rates is far more thorough 
than either the English or the American method, and is carried 
into effect by a highly differentiated organization of government 
experts well adapted for the work to be performed. It is reason- 
ably free from those features which are supposed to render 
government control a bane to capital and enterprise, yet it 
nevertheless succeeds remarkably well in preventing the discrimi - 
nations and the reckless rate-making of which American railways 
are constantly accused. It has been thoroughly tested since 
1846 in a prosperous democratic country, full of jealous cities 



215] The Economic Seminary, 1905-1906 43 

and of keenly competing industries, and now possessing a total 
railway network of 25,000 miles. 

We should bear in mind that in relation to French railway 
companies the legal powers of the State, being strictly defined in 
the contracts by which the railway concessions were made, are far 
more limited than those of our government in relation to our 
companies. There are other points of difference between our 
railways and the French which need not concern us here. For 
instance their concessions are limited in time, having now about 
50 years more to run ; the State since 1883 has guaranteed to 
some of them a minimum dividend ; their construction, equip- 
ment and operation are subject to minute State supervision. But 
for the purpose of our comparison with American railways these 
differences are not material, since in all things connected with the 
making of rates, except the one feature of public regulation, the 
French railway companies closely resemble our own. Each is a 
great business corporation, controlled by its stockholders, admin- 
istered by its directors, and organized with the main object of 
earning the largest possible dividend on its shares. 



A Reprint of Economic Tracts 



SECOND SEKIES 



In consequence of the favorable reception accorded the reprint of four 
economic tracts of the nineteenth century in 1903-4, the Johns Hopkins 
Press invites subscriptions to a similar reprint of four important economic 
tracts of the seventeenth century. Should sufficient encouragement be 
received to warrant the enterprise, it is proposed to issue the tracts con- 
secutively under the editorial direction of J. H. Hollander, Ph. D., Pro- 
fessor of Political Economy in the Johns Hopkins University. 

The proposed series will consist of the following tracts : 

(1) A Discourse of Trade. By Nicholas Barbon. London, 1690. 

(Ready.) 

(2) Several Assertions Proved, in order to create another species of 

money than gold and silver. By John Asgill. London, 1696. 

(3) Discourses upon Trade, principally directed to the cases of the 

interest, coynage, clipping, increase of money. By Dudley 
North. London, 1691. 

(4) England's Interest Considered, in the increase of the trade of 

this kingdom. By Samuel Fortrey. Cambridge, 1663. 
Each tract will be supplied with a brief introductory note and necessary 
text annotations by the editor. The general appearance of the title page 
will be preserved and the original pagination will be indicated. 

The edition will be limited to five hundred copies. With a view to 
serving the largest scientific usefulness, the subscription for the entire 
series of four tracts has again been fixed at the net price of One Dollar 
(5 shillings — 5 marks — 6 francs). Subscriptions for the series should be 
sent to 

The Johns Hopkins Press, 

Baltimore, Md. 

First Series of Reprints of Economic Tracts. 

Of the first series of reprints, a limited number can yet be obtained at 
the price of One Dollar and a Half ($1.50) net, for the series. The first 
series can only be supplied in conjunction with a subscription to the second 
series. As the edition approaches exhaustion, the price is likely to be 
further increased. The first series consists of the following tracts : 

1. Three Letters on < The Price of Gold.' By David Eicardo, 1809. 

2. An Inquiry into the Nature and Progress of Bent. By T. R. 

Malthus, 1815. 

3. Essay on the Application of Capital to Land. By Sir Edward 

West, 1815. 

4. A Refutation of the Wage-Fund Theory. By Francis D. Longe, 

1866. 



JOHNS HOPKINS UNIVERSITY STUDIES 

IN 

Historical and Political Science 

(Edited by H. B. ADAMS, 1882-1901) 

J. M. VINCENT, J. H. HOLLANDER, W. W. WILLOUGHBY, 

Editors. 



TWENTY-FOURTH SERIES, 1906. 



The University Studies will continue to publish, as heretofore, the 
results of recent investigations in History, Political Science, and Political 
Economy. The cost of subscription for the regular Annual Series, com- 
prising about 600 pages, with index, is $3. 00. Single numbers, or special 
monographs, at special prices. 

For the year 1906, the titles given below are now announced; other numbers willfolloiv from 
time to time. 

SPANISH AMERICAN DIPLOMATIC RELATIONS PRECEDING THE WAR OF 

1898. Bv H. E. Flack. 50 cents. 
THE FINANCES OF AMERICAN TRADE UNIONS. By Aaron M. Sakolski. 
LABOR FEDERATIONS IN THE UNITED STATES. By William Kirk. 
DIPLOMATIC RELATIONS OF THE UNITED STATES AND RUSSIA. By John 

C. Hildt. 
STATE RIGHTS IN NORTH CAROLINA, 1776-1870. By H. M. Wagstaff. 
TRADE AGREEMENTS IN THE UNITED STATES. By Frederick W. Hilbert. 
THE APPRENTICE AND AMERICAN TRADE UNIONS. By James M. Motley. 
FIVE CENTURIES OF SUMPTUARY LAW IN EUROPE. By J. M. Vincent. 



Annual Series of Studies in Historical and Political Science, 1883-1905. 

SERIES I.— LOCAL INSTITUTIONS. 479 pp. $4.00. 

SERIES II.— INSTITUTIONS AND ECONOMICS. 629 pp. $4.00. 

SERIES III.— MARYLAND, VIRGINIA AND WASHINGTON. 595 pp. $4.00. 

SERIES IV.— MUNICIPAL GOVERNMENT AND LAND TENURE. 600 pp. $3.50. 

.SERIES V.— MUNICIPAL GOVERNMENT, HISTORYAND POLITICS. 559pp. $3.50. 

SERIES VI.— THE HISTORY OF CO-OPERATION IN THE UNITED STATES. 
540 pp. $3.50. 

SERIES VII.— SOCIAL SCIENCE, MUNICIPAL AND FEDERAL GOVERNMENT. 
— (Not sold separately.) 

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SERIES IX.— EDUCATION, POLITICS, AND SOCIAL SCIENCE.— (Not sold sepa- 
rately.) 

SERIES X.— CHURCH AND STATE, COLUMBUS AND AMERICA. 630 pp. $3.50. 

SERIES XL— LABOR, SLAVERY, AND SELF-GOVERNMENT. 574 pp. $3.50. 

SERIES XII.— INSTITUTIONAL AND ECONOMIC HISTORY. 626 pp. $3.50. 

SERIES XIII.— SOUTH CAROLINA, MARYLAND, AND VIRGINIA. 606 pp. 
$3.50. 

SERIES XIV.— BALTIMORE, SLAVERY, AND CONSTITUTIONAL HISTORY. 
588 pp. $3.50. 

SERIES XV.— AMERICAN ECONOMIC HISTORY. 618 pp. $3.50. 

SERIES XVI.— ANGLO-AMERICAN RELATIONS AND SOUTHERN HISTORY. 
624 pp. S3. 50. 

- ! ■: R I ES XVII.— ECONOMIC HISTORY : MARYLAND AND THE SOUTH. 600 pp. 
$3.50. 

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The set of twenty-three series of Studies is now offered, uniformly bound in cloth, for 
library use, for $80.00 net. 

Orders should be addressed to The Johns Hopkins Press, Baltimore, Maryland. 



JOHNS HOPKINS UNIVERSITY CIRCULAR, No. 196 

- I 

APRIL, 1907 
CONTENTS 

PAGE 

The Economic Seminary, 1906-1907 : 

The Convention between the United States and the Dominican 

Kepublic. By Jacob H. Hollander, 4 

The Budget of the Typographical Union. By George E. 

Barnett, 9 

Supervisors of City Charities, Baltimore City. By John M. 

Glenn, 12 

The Kelation of Railroad Rates to Capitalization. By Logan 

G. McPherson, 16 

Beneficiary Features of the Iron Molders' Union of North 

America. By J. B. Kennedy, 21 

Trade Unionism in Baltimore before the War of 1812. By T. 

W. Glocker, - - 26 

The Cigarmakers' " Blue Label." By E. R. Spedden, - 30 
The Minimum Wage in Baltimore Trade Unions. By D. A. 

McCabe, 34 

The Molding Machine. By Edwin T. Cheetham, - - 36 

Frederick W. Hilbert, , - - 40 

Proceedings of Societies, - 44 

Current Notes, - - - -47 



THE 

JOHNS HOPKINS 
UNIVERSITY CIRCULAR 

New Series, 1907, No. 4 APRIL, 1907 Whole Number, 196 

THE ECONOMIC SEMINARY, 1 906-1 90T 

Edited by Professor J. H. Hollander and Associate 
Professor G. E. Barnett. 



Emphasizing as its primary design the development of sound 
method in economic research, the Economic Seminary has con- 
tinued, during the current academic year, to give chief attention 
to an investigation into the history, activities and influence of 
labor organization in the United States. Appreciable progress 
has also been made by individual members of the Seminary in 
the study of specific aspects of the general subject. During the 
summer, field work was carried on in various carefully selected 
localities, and the data thus collected have since been supple- 
mented and corrected by documentary study and personal inter- 
view. The material resources necessary for the inquiry have 
been supplied by the continued generosity of the donor, whose 
original gift made its inception possible. 

A second, much enlarged edition of the ' 4 Trial Bibliography 
of American Trade-Union Publications ' ' has been issued under 
the editorship of Associate Professor Barnett, embodying much 
additional documentary material collected by the Seminary 
during the past two years. Two monographic studies, submitted 
by senior members of the Seminary in part fulfillment of the 
requirement for the doctor of philosophy degree, are now in„press 

1 



Johns Hopkins University Circular 



[212 



October 


3. 


October 


10. 


October 


17. 



for issue in the Johns Hopkins University Studies in Historical 
and Political Science, xxv Series, as follows : "Apprenticeship 
in American Trade Unions," by James M. Motley, Ph. D., and 
"The Financial History of Maryland, 1789-1848," by Hugh 
S. Hanna, Ph. D. 

The record of the proceedings of the Seminary and abstracts 
of certain papers presented are appended : 



Reports of the summer field work and outline of the work 

of the Seminary. 
"The Federation of Local Trade Unions," by T. W. 

GLOCKER. 

"The Strike of the Baltimore Butchers," by E. H. 

Morse. 
"Child Labor Conditions in the Corn and Tomato Can- 
neries of Maryland," by S. Blum. 
"Sick Benefits in American Trade Unions," by J. B. 

Kennedy. 
" Trade Unionism in Baltimore in 1808 and 1809," by 

T. W. Glocker. 
11 Recent Increase in the Rate of Interest by the Bank of 

England," by E. T. Cheetham. 
" Jurisdictional Disputes in American Trade Unions," by 

S. Blum. 
"The Debt of San Domingo," by Professor Hollander. 
"Amalgamation of Trades as a Cause of Jurisdictional 

Disputes," byS. Blum. 
"Apprenticeship in the Iron Molders' Union of North 

America," by Dr. J. M. Motley. 
"A Comparison of Industrial Conditions in England and 

America, by Douglas Knoop, A. M. 
"History of the Trade Union Label," by E. R. Spedden. 
"The Minimum Wage in the Baltimore Building Trades," 

by D. A. McCabe. 
"Problems of Rural Life in Ireland and America," by 

Sir Horace Plunkett, Vice-President of the Depart- 
ment of Technical Instruction for Ireland, and by Mr. 

George Fletcher, Assistant Secretary of Technical 

Instruction for Ireland. 
' ' Economic Significance of Death and Disability Benefits 

in American Trade Unions," by J. B. Kennedy. 
1 1 The Control of Strikes in American Trade Unions, ' ' by 

E. H. Morse. 



October 24. 


October 31. 


November 7. 


November 14. 


November 21. 


November 27. 


December 5. 


December 13. 


December 20. 



January 
January 



213] 




January 


17. 


January 


23. 


January 


31. 


February 


6. 


February 


14. 


February 


20. 


February 


28. 


March 


7. 


March 


15. 


March 


21. 


March 


27. 


April 


11. 


April 


17. 



The Economic Seminary, 1906-1907 



3 



" Finances of the International Typographical Union," 
by Dr. George E. Barnett. 

"Rise and Territorial Growth of National and Inter- 
national Trade Unions," by T. W. Glocker. 

' ' Death and Disability Benefits in American Trade 
Unions," by J. B. Kennedy. 

"Administration of Death and Disability Benefits in 
American Trade Unions," by J. B. Kennedy. 

"The History of the Cigar Makers' Label," by E. R. 
Spedden. 

" The Regulation of the Cigar Makers' Label," by E. R. 
Spedden. 

"Railroad Rates and Capitalization," by Logan G. 
McPherson. 

' { The Minimum Wage in Baltimore Trade Unions, ' ' by 
D. A. McCabe. 

"American Socialism," by William H. Mallock, Esq., 
discussed by Hon. Charles P. Neill, U. S. Commis- 
sioner of Labor and the Rev. Dr. William J. Kerby, 
of the Catholic University. 

"The Minimum Wage in Industrial Unions," by D. A. 
McCabe. 

"Legal Aspects of the Trade-Union Label," by E. R. 
Spedden. 

"The Convention between the United States and the 
Dominican Republic," by Professor Hollander. 

"Legal Aspects of American Trade-Union Benefits," by 
J. B. Kennedy. 

" Trade-Unionism in Swedeo," by Gosta Bagge. 



Johns Hopkins University Circular [214 



THE CONVENTION BETWEEN THE UNITED STATES AND 
THE DOMINICAN KEPUBLIC. 

By Jacob H. Hollander. 

On March 18, 1905, the United States Senate adjourned 
without final action on the agreement between the United States 
and the Dominican Republic providing for the collection and 
application by the United States of the customs revenues of the 
Dominican Republic. 

In this juncture, in view of the certainty of domestic irruption 
and the likelihood of foreign intervention in San Domingo, the 
United States acceded to the proposal of the Dominican Republic 
for an interim arrangement. This arrangement provided for the 
collection of customs revenues by a person nominated by the 
President of the United States and commissioned by the Domin- 
ican Government, and for the segregation of fifty-five per cent, 
of the proceeds in a depository designated by the President of 
the United States, to be ultimately applied to the discharge of 
the debt. On April 1, 1905 this temporary arrangement went 
into effect and has since remained in actual operation. 

With the lapse of time and the satisfactory working of the 
interim arrangement, there seemed reason for believing that 
much of the opposition to the original agreement on the part of 
the United States Senate was due to the large responsibilities 
therein imposed upon the United States. It was thought that 
much of this opposition would disappear if, instead of the United 
States both adjusting the debt and collecting the customs for the 
payment thereof, the Dominican Republic should itself arrive at 
a voluntary agreement with all recognized debtors and claimants, 
and the United States merely undertake to administer the 
customs for the service of the debt as adjusted. 

Assured of the good offices of the United States in such an 
endeavor, the President of the Dominican Republic appointed 
Senor Federico Velazquez, Minister of Finance and Commerce, 
as special commissioner for the adjustment of the financial 
difficulties of the Republic. Senor Velazquez came to the United 



215] The Economic Seminary, 1906-1907 5 

States in the latter part of June, 1906, and remained here, 
busily engaged, for the two months succeeding. The result of 
his labors were three conditional engagements, in harmony with 
the plan proposed : 

(1) An agreement with Kuhn, Loeb & Co., of New York 
City, for the issue and sale, at 96, of bonds of the Dominican 
Republic to the amount of $20, 000, 000, bearing five per cent, 
interest payable in fifty years, and redeemable after ten years at 
102^, and requiring payment of at least one per cent, per annum 
for amortization. The proceeds of the bonds, together with the 
funds segregated for the benefit of creditors under the interim 
arrangement were to be applied first to the payment of the debts 
and claims as adjusted, second to the extinction of certain 
burdensome concessions and monopolies, and, third, to the con- 
struction, under proper restrictions, of railroads, bridges and 
other public improvements. All of the above was conditioned 
upon the completion of a treaty with the United States, by the 
terms of which the United States should undertake the collection 
of the customs revenues of the Dominican Republic and the 
application thereof, so far as necessary, to the service of the new 
bonds, the remainder being paid over to the Republic. 

(2) An agreement with the Morton Trust Company, of New 
York City to act (a) as depositary to receive the purchase price 
of the new bonds when paid and to encourage and promote the 
adjustment of the outstanding indebtedness and claims in accord- 
ance with the terms offered by the Republic ; and (6) as fiscal 
agent of the loan, to receive from out the customs revenues 
collected by the United States the sum of $100,000 monthly to 
be applied to the payment of interest upon and to the provision 
of a sinking fund for the new bonds. 

(3) An offer of settlement to the holders of recognized debts 
and claims, enumerated therein, to adjust these in cash at rates 
ranging, respectively, from ninety to ten per cent, of the nominal 
values. Assenting holders were required, in order to obtain the 
benefit of this offer, to signify their acceptance in writing and to 
deliver their obligations, duly assigned, to the depositary. The 
nominal aggregate of the recognized debts and claims included in 



6 Johns Hopkins University Circular [216 

the offer of settlement, exclusive of accrued interest, was 
$31,833,510, for which the Republic proposed to pay in adjust- 
ment $15,526,240, together with certain interest allowances 
correspondingly reduced. 

On January 5, 1907, the holders of debts and claims had 
assented to the terms of the offer of settlement in sufficient 
amount to assure the success of the readjustment, as in so far 
dependent. A new convention between the United States and 
the Dominican Republic was accordingly prepared, and on Feb- 
ruary 8, 1907, this received the signature of the respective 
plenipotentiaries at Santo Domingo City. On February 12th a 
telegraph copy of the convention was transmitted by President 
Roosevelt to the United States Senate for the advice and consent 
of that body to its ratification, and on February 19th, this copy 
was replaced by the signed original. Six days later, on Febru- 
ary 25th, the Senate ratified the treaty with but one verbal and 
unimportant change. The convention now only awaits the 
approval of the Dominican Congress to become effective. 

The new convention recites in preamble form that disturbed 
political conditions in the Dominican Republic have created debts 
and claims, many of doubtful validity, amounting in all to over 
$30, 000, 000 ; that the same conditions have allowed this debt to 
go into default and that the pressure thereof is a burden to the 
Republic and a barrier to its improvement and prosperity ; that 
the foreign creditors have agreed to accept about $12,407,000 
for debts and claims amounting to about $21,104,000 of nominal 
value, and the holders of internal debts or claims of about 
$2,028,258 nominal value have agreed to accept about $645,827 
therefor, and the remaining holders of internal debts or claims 
on the same basis as the assents already given will receive about 
$2, 400, 000 therefor, which sum the Dominican Government has 
fixed and determined as the amount which it will pay to such 
remaining internal debt holders ; making the total payments 
under such adjustment and settlement, including interest as 
adjusted and claims not yet liquidated, amount to not more than 
about $17,000,000. 



217] The Economic Seminary, 1906-1907 7 

The convention continues, that a part of such plan of settle- 
ment is the issue and sale of bonds of the Dominican Republic 
to the amount of $20,000,000, bearing five per cent, interest 
payable in fifty years, and payable after ten years at 102^, and 
requiring payment of at least one per cent, per annum for amor- 
tization. The proceeds of such sale, together with sums hereto- 
fore set aside, are to be applied to the payment of the adjusted 
indebtedness, and to the extinction of burdensome concessions, 
and thereafter to the construction of works of internal improve- 
ment ; moreover that "the whole of said plan is conditioned 
and dependent upon the assistance of the United States in the 
collection of customs revenues of the Dominican Republic and 
the application thereof so far as necessary to the interest upon 
and the amortization and redemption of said bonds, and the 
Dominican Republic has requested the United States to give and 
the United States is willing to give such assistance. ' ' 

The two governments therefore agree that the President of the 
United States shall appoint a General Receiver of Dominican 
Customs, who with the necessary assistants, likewise appointed, 
shall collect all the customs duties of the Republic until the 
payment of redemption of the bonds so issued. From the sum 
so collected, the General Receiver, after discharging the expenses 
of the receivership, shall pay over to the fiscal agent of the loan 
on the first day of each calendar month, the sum of $100,000 to 
be applied to the payment of the interest and the amortization of 
all the bonds issued. The remainder of the sums collected by 
the General Receiver are to be paid monthly to the Dominican 
Government. 

The Dominican Government may apply any further sums to 
the amortization of the bonds, over and above the one per cent, 
sinking fund provision stipulated ; but in any event, should the 
customs revenues collected by the General Receiver in any year 
exceed the sum of $3,000,000, one-half of the surplus above 
such sum of $3, 000, 000 must be applied to the sinking fund for 
the further redemption of bonds. 

The Dominican Government agrees to provide by law for the 
payment of all customs due to the General Receiver and his 



8 Johns Hopkins University Circular [^18 

Assistants, and to give them all useful aid and assistance and full 
protection to the extent of its powers. The Government of the 
United States in turn undertakes to give to the General Receiver 
and his assistants such protection as it may find to be requisite 
for the performance of their duties. 

Provision is also made that until the Dominican Republic has 
paid the whole amount of the bonds so created there shall be no 
increase of its public debt except by previous agreement between 
the Dominican Government and the United States, and that the 
like agreement shall be necessary for any modification of the 
Dominican import duties, provided that an indispensable condi- 
tion for the modification of such duties shall be ' ' that the 
Dominican Executive demonstrate and that the President of the 
United States recognize that, on the basis of exportation s and 
importations to the like amount and the like character during the 
two years preceding that in which it is desired to make such 
modifications, the total net customs receipts would at such altered 
rates of duties have been for each of such years in excess of the 
sum of $2,000,000 United States gold." The accounts of the 
General Receiver must be rendered monthly to the Contaduria- 
General of the Dominican Republic and to the State Department 
for examination and approval by the appropriate officials of the 
two governments. 

The distinctive feature of the new convention as compared 
with the original agreement is this : that the United States does 
not undertake to adjust or determine the Dominican debt, but 
merely to administer the customs of the Republic for the service 
of a new loan, the proceeds of which are to be devoted to the 
discharge of all recognized debts and claims, reduced to a basis 
acceptable both to the Republic and the creditors. Even this 
responsibility is limited to a period of fifty years and may, with 
the prior amortization of the loan, be terminated at an earlier 
date. During this period the Dominican Republic is not to 
increase its public debt nor to modify its import duties save in 
agreement with the United States. 

To the Dominican Republic this extension of the United 
States' good offices means that debts and claims aggregating some 



219] The Economic Seminary, 1906-1907 9 

$32,000,000 will be discharged for about $17,000,000, that the 
Kepublic's credit is at once established on a very high plane, 
that onerous concessions and monopolies are to be redeemed and 
important works of internal improvement undertaken, that civil 
quiet and adequate revenues for the maintenance of government 
are assured, and that imminent danger of foreign intervention is 
removed, — and all this without loss of territorial integrity nor 
menace of independent sovereignty. 



THE BUDGET OF THE TYPOGEAPHICAL UNION. 

By George E. Barnett. 

The balancing of expenditures and receipts during the early 
period in the financial history of the Typographical Union was a 
very simple matter. Of the two great items of expenditure — 
printing of proceedings and salaries — the first was comparatively 
stable and could be calculated with some exactness. The flexible 
element was the salary list. Until 1888 the amount of salary 
paid any officer was entirely within the discretion of the session. 
The constitution provided that the Secretary-Treasurer should 
be paid for his services, but the amount was not fixed. As soon 
as the Union had a surplus, the practice of paying the president 
and other officers began, but these payments were always regarded 
as honorary rewards and in any financial stress were scaled down 
or omitted. For some years the amount of these payments was 
decided upon by the Union without any preliminary consideration 
in committee, but from 1866 all motions of a financial nature 
were referred to the committee on finance, which made up a list 
of salary recommendations. The proposals of the committee 
were usually followed by the Union, although on more than one 
occasion a large surplus was the signal for an attempt to largely 
increase the officers' salaries. The per capita tax thus remained 
stable until 1885, the annual rate being 20 or 25 cents. 



10 Johns Hopkins University Circular [220 

Since 1889 the per capita tax has been regularly apportioned 
by the Union among the several funds. This apportionment of 
the tax has been fairly successful. The greater part of the 
expenditures of the Union can be calculated with exactness ; 
thus, the per capita cost of the Burial Benefit, of the Printers' 
Home, and of administration vary only slightly from year to 
year. But disparities in the expenditures and receipts have 
occurred from time to time, and in recent years have become 
increasingly important. Three devices have been resorted to on 
these occasions : 

(a) The session of 1892 provided that the Secretary-Treasurer 
might transfer money from the general fund to the defense fund 
when the amount in the general fund should exceed $2,000. 
No transfers were made under this law, but in 1896 the Union 
authorized the executive council to transfer moneys of the Union 
from one fund to another "whenever deemed necessary for 
maintaining the integrity of the organization." This authori- 
zation has been liberally construed and deficiencies in the general 
fund constantly accruing from 1897 to 1904 were made up by 
transfers from the burial fund and from the defense fund. 

(b) Far more important than the transfer of funds as a 
means of equalizing the expenditures and receipts, has been the 
practice of levying special assessments. The defense fund has 
received the benefit of all these assessments and the occasion of 
each has been a national struggle. When the defense fund was 
established collective bargaining in the Typographical Union was 
entirely on a local basis. The formation of the Typothetse has 
been followed by strikes of a magnitude hitherto unknown in the 
trade. The conduct of these strikes has come to be almost 
entirely in the hands of the National Union. Each special 
assessment represents a definite stage in the history of collective 
bargaining. 

(c) The national officers have never been satisfied with the 
special assessment in its present form as a means of financing 
strikes. In order to levy special assessments, the executive 
council must submit the proposition to the referendum. At least 
a month is required and the uncertainty of the result has a bad 



221] The Economic Seminary, 1906-1907 11 

effect on the striking union. The executive council has at 
various times proposed to the membership other plans of financing 
strikes. In 1899 the referendum voted on a proposal to empower 
the council to levy assessments, without consulting the member- 
ship. Another proposal submitted at the same time provided 
for a per capita tax of ten cents monthly to be devoted to the 
establishment of a permanent defense fund of $100,000. It was 
pointed out that the strike benefit of a married man for a week 
consumed all his payments to the defense fund for eight years. 
All the propositions were defeated although the majority against 
the first one was not large. In 1900 a proposal to levy a per 
capita tax of six cents for the establishment of a reserve fund 
was defeated by a large majority. 

The Union is obviously opposed to increasing the funds for 
defense at the disposal of the officers. The same feeling which 
has kept in existence the antiquated convention — the desire to 
maintain some effective supervision of the official staff — has made 
the Union unwilling to forego its direct supervision of all extra- 
ordinary expenditures for defensive purposes. It must be borne 
in mind that the greater part of the duties of the officers are 
strictly routine and that the granting aid from the defense fund 
is their most important deliberative task. The policy of the 
Union might be seriously changed if this power were augmented. 
While the membership has never refused to vote a strike 
assessment proposed by the council, the possibility is always 
present that it may do so. 

The partial accomplishment of the plan of the council was 
brought about, however, in 1903 by a favorable conjunction of 
circumstances. In 1902 the Union had voted a special tax of 
five cents monthly in aid of the fight of the Los Angeles Union 
against the Los Angeles Times. At the session of 1903 the 
president suggested that this tax be devoted to the establishment 
of a special defense fund. The membership, already accustomed 
to the payment of the tax, assented by a large majority, to its 
continuance. The special defense fund thus created was entirely 
at the disposal of the executive council. By May 31, 1905, the 
fund amounted to 837,671.09. The eight hour strike which 



12 Johns Hopkins University Circular [222 

began in September of that year made it necessary within a 
short while to resort to a special assessment. 

Collective bargaining on a national scale means the possibility 
of very costly strikes and it hardly seems possible to obviate 
entirely the necessity of special assessments. The burden of such 
assessments may be sensibly diminished by a system of reserve 
funds. In any national strike, however, the taking a referendum 
has political advantages which may be expected to outweigh the 
purely financial reasons advanced for an extreme reserve policy. 



SUPERVISOKS OF CITY CHARITIES, BALTIMORE CITY. 
By John M. Glenn. 

Prior to 1896 the Mayor and City Council of Baltimore had 
been in the habit of making appropriations to private institutions 
for the care of children, of the sick, of the insane and for some 
aged people in lump sums to private institutions with practically 
no supervision of the work done by the institutions and no inquiry 
as to the claims of applicants for aid. The city had also con- 
ducted its own almshouse which was supposed to be for the care 
of aged and infirm persons and certain classes of the sick. Up 
to 1896 admission to the almshouse had been comparatively easy 
to any and every applicant who seemed to be poor. There was 
little discrimination between those really in need of help and 
able-bodied bums. A new board of trustees appointed by Mayor 
Alcaeus Hooper in 1896 introduced a system of careful inquiry 
as to applicants and their claims and resources, and also a method 
of supervision of patients in hospitals. This resulted in a mate- 
rial reduction of the winter population of the almhouse, in the 
elimination of applicants who were not entitled to aid in the 
hospitals and in better care for the sick. 

In 1897 a resolutipn was passed by the Mayor and City Council 
of Baltimore providing for the appointment of a commission of 
five by the Mayor ' ' to devise a plan whereby the city could care 



223] The Economic Seminary, 1906-1907 13 

directly for its indigent poor, waifs and orphans ' ' and ' ' to 
devise and report a method of appropriation to dispensaries and 
hospitals where the city committed persons for attention." This 
commission submitted a report in which it recommended that all 
appropriations for the care of the poor should be made directly 
to the trustees of the poor to be expeDded by them according to 
law. Also that the city should not pay for the maintenance of 
any adult poor outside the almshouse except the sick, insane and 
a few other special classes requiring special treatment. It recom- 
mended as to hospitals that a limited number of the best hospitals 
should be employed and that they should be selected partly with 
reference to location so that they would be situated in different 
parts of the city ; and also that a supervision should be kept over 
the hospitals and that no one should be admitted except on the 
certificate of an agent of the trustees of the poor. It recom- 
mended as to children that the city should pay only for such 
children as are committed to the trustees of the poor and accepted 
by them as city charges ; that all such children should be placed 
by the trustees in some institution or family and that they should 
be visited regularly every six months. 

In the new charter of Baltimore enacted by the legislature of 
1898, most of the recommendations of the commission were 
adopted. The charter provides for a board of nine ' ' Supervisors 
of City Charities." The supervisors hold office for six years 
each, three retiring every two years. The president is designated 
by the Mayor. They are ' ' appointed by the Mayor from among 
those whom he deems, by reason of their intelligence, experience 
and character, to be most capable of caring for the poor econom- 
ically, intelligently and humanely. In the selection of the 
supervisors and in their action ecclesiastical or party ties shall not 
be regarded, so that the care of the poor may be entirely out of 
the field of political or religious controversies. ' ' The supervisors 
serve without pay. 

The charter introduced the principle that all appropriations for 
the indigent poor in private institutions shall be by contract, 
payment to be made per capita for care rendered. In no case 
may a gross sum be appropriated to any private institution. It 



14 Johns Hopkins University Circular [224 

is forbidden to pay public money for the care of any person until 
the supervisors ''have determined and certified in writing that 
such person is a proper subject of municipal aid." 

The charter also provides that no money shall be appropriated 
or spent for the care of adults outside of institutions owned by 
the State except for the sick, insane and other special classes 
requiring special treatment or homeless persons requiring tempo- 
rary care. 

The supervisors are also given supervision over all children 
who are accepted by them as proper charges on the city. They 
are given power to remove the children from one institution to 
another and to place children out in free homes. Children can- 
not be discharged from institutions without the approval of the 
supervisors unless by the direction of a court. The supervisors 
are required to have the children who are placed in families 
visited at least once in every six months by one of the supervisors 
or a skilled agent employed for the purpose. 

The result of the adoption of these suggestions is interesting. 
In the first place, instead of a steadily increasing list of institu- 
tions for which money is appropriated by the city, all money is 
now appropriated directly to the representatives of the City to be 
spent by them in their discretion. In 1885 there was appropri- 
ated for the care of children $10,600, distributed among 5 insti- 
tutions. In 1890 there was appropriated for the same purpose 
$23,000, distributed among 9 institutions. In 1895 the appro- 
priation had risen to $37,100 and the number of institutions to 
11. The next year another institution was added to the list and 
the total appropriation reduced to $34, 300. No supervision was 
exercised over institutions or inmates. There was not even any 
accounting. For the year 1900, $34,770 was appropriated to 
the supervisors of city charities. $34,138 of this sum was paid 
out on a per capita basis to 12 institutions. In 1905 $35,000 
was appropriated and only $28,881 expended. The number of 
institutions used by the city was 10. December 31, 1901, the 
City had under its care and supervision 478 children, 32 of 
whom were in private families costing the City nothing for their 
maintenance. At the end of 1905 it had under its care 578 



225] The Economic Seminary, 1906-1907 15 

children of whom 174 were in private homes and 45 in institu- 
tions at no charge to the City. During 1905, 264 children were 
referred to the care of private charity or to parents and relatives. 
Most of these children would have become charges on the city 
under the old system. In 1905, 127 children were accepted as 
city charges. 

The story of the hospital is a similar one. In 1885 the City 
appropriated $13,500 to 2 hospitals for which it had the use of 
80 beds. In 1890 the City appropriated $32,450 to 6 hospitals 
for 250 beds. In 1895 it appropriated $59,995 to 8 hospitals 
for 355 beds. In 1905 $64,000 was appropriated to the super- 
visors. Of this $60, 345 was expended for indoor patients and 
$1796 for emergency cases, leaving unexpended $1859. Six 
general and 2 special hospitals were used by the City. The case 
of every applicant was carefully investigated, both as to his 
financial resources and as to his condition, but no sick persons 
entitled to be treated at the expense of the City were neglected or 
rejected. 

The supervisors have charge also of the indigent insane. 
About 400 insane patients are in the city hospital at Bay View, 
750 in the 2 state hospitals and 250 in Mount Hope. The City 
pays at the rate of $150 a year for each patient kept in these 
hospitals. 

All applications for transportation to other localities are 
investigated by the supervisors. In 1905 there were 437 
applications. In 136 cases transportation was furnished ; in 
126 it was refused ; in 48 investigation was declined by the 
applicant ; the rest were provided for by relatives and other 
agencies. 

The supervisors also contract with the Friendly Inn for the 
care of homeless men at a cost of $1000 a year. 

The supervisors have under them a paid force of trained 
workers consisting of a secretary, a visitor-in- chief and three 
visitors for children, 2 hospital inspectors and a stenographer 
beside the force at Bay View Asylum. The result of the work 
of this force in careful investigation of the claims and needs of 
applicants has been a large saving to the City. The expense of 



16 Johns Hopkins University Circular [226 

the city offices in 1905 was $7900. Through the work of its 
force $12,000 was received from relatives and friends of insane 
patients as part reimbursement for cost of care. 264 children 
who might otherwise have become charges on the city were kept 
with parents or relatives or put in charge of private charities. 
Beside these a large number of applicants for help in the 
hospitals and in Bay View, for whom there were more natural 
sources of relief, were kept from becoming charges on the city. 
It is a reasonable estimate that the work of this office force has 
saved the city $30,000 to $40,000 a year at least. 

A comparison of the appropriations for 1905 with those for 
1900 shows the benefits of supervision in limiting appropriations. 
In 1900 the appropriation for hospital patients was $60,000, for 
children $35,000. In 1905 the corresponding appropriations 
were $64,000 and $35,000 respectively. Undoubtedly, both 
these appropriations would have grown steadily but for the 
exercise of careful supervision. The amount of the appropriation 
for children has also been kept down by placing out children in 
private homes without cost to the City. The total amount 
expended by the supervisors was $385,357. Of this $128,400 
was for the almshouse and $148,000 for the care of the insane. 



THE RELATION OF KAILKOAD RATES TO CAPITALIZATION 
By Logan G. McPherson. 

When any new business enterprise is considered the first 
calculation of the projectors is as to what markets they can enter, 
what price they can obtain, and what quantity of product they 
can probably sell. From the probable revenue they calculate 
backward, estimating the probable cost of maintaining the plant 
and of manufacturing, and what residue will be necessary to 
provide for a return on the capital required for the construction 
of that plant. The same process applies to the adjustment of 
railroad freight rates. Into the cost of a product at place of 



227] The Economic Seminary, 1906-1907 17 

market enters not only the cost of raw material and of manu- 
facture, but the transportation charge from place of manufacture 
to place of market. The rates of the railroad therefore have to 
be so adjusted that commodities may find a market. The pro- 
ducers and the railroads must at all times work together in the 
adjustment of prices and rates to the needs of the market. The 
present adjustment of freight rates has been evolved along these 
lines with the result that practically all products, from every 
place of production, are in competition in all markets of the 
United States. 

To say that rates have been made absolutely regardless of the 
capitalization of a railroad may sound preposterous, but it is very 
nearly, if not quite, true. If a railroad could fix its rates in 
accordance with capitalization, would any railroad ever go into 
bankruptcy? In 1894 a third of the railroad mileage of the 
United States was in bankruptcy. If it be argued that the 
capital was so inflated that they could not earn return upon it, 
the argument admits that rates cannot be forced up because 
capitalization has been forced up. Anyone who has scrutinized 
the published returns of the railroads for the past several months 
has perceived that while their gross earnings, as a rule, have 
steadily advanced, the net revenue, that from which interest and 
dividends have to be paid, is decreasing on many roads in many 
parts of the country. 

As to the relation that the revenue of the railroads of the 
United States bears to their capitalization, interesting information 
can be obtained from the reports of the Interstate Commerce Com- 
mission. The latest report, that covering the year 1905, shows 
the total earnings of the railroads to have been for that year 
$2,134,208,156. The expenses for operating, rentals, interest 
on current obligations, and the taxes were $1,466,140,749, or 
69 % of the earnings. Leaving out of account any return on 
capital, any adjustment because of depreciation of the railroads 
or their equipment, or any provision for a surplus for use in time 
of need, the revenue could not have been reduced more than 
31 % if the railroads were to be allowed no more than their bare 
running expenses. 



18 Johns Hopkins University Circular [228 

According to the same report the capitalization of the railroads 
of the United States for the year 1905 was as follows : 

Bonds, - $5,456,349,002 

Other funded indebtedness, - 1,226,252,047 

Stock, .... 4,484,504,943 



Total, - - - $11,167,105,992 

From these figures are excluded the stocks and securities in so 
far as ascertained of one railroad held by another railroad. 
Such stocks and securities of the issuing company are covered by 
issues of the proprietary companies. In so far as the capital 
account of the railroads of the United States as a whole is con- 
cerned, it would be a duplication to include them in both cases. 

The report gives the mileage for which operations are reported, 
for 1905, as 216,974. The average capitalization per mile is 
therefore $51,467. The considerably higher average capitaliza- 
tion usually given is obtained by including the shares and 
securities of one railroad owned by another railroad. That there 
is inflation in the capitalization of certain particular railroads of 
this country, nobody will deny. The fact that this inflation is 
included in the calculation from which the average of $51,467 is 
obtained is evidence that the average capitalization of the con- 
servatively administered railroads, which are by far the greater 
proportion of the railroads of the country, is moderate. 

Five per cent, cannot be considered an extravagant return 
upon investments. If the entire capitalization for 1905, 
$11,167,105,992, had obtained a return of 5%, that return 
would have amounted to $558,355,299. This amount deducted 
from the 31 % of the earnings left after the payment of current 
expenses, that is, this amount deducted from $668,067,407 
would leave $109,712,108. This, it will be perceived, is less 
than one per cent, of the total capitalization ; that is, had the 
entire capitalization obtained a 5 % return there would have 
remained less than 1 % for betterments and improvements, for 
depreciation, and for the surplus. The truth is, as shown by the 
report of the Interstate Commerce Commission, that even for the 



229] The Economic Seminary, 1906-1907 19 

prosperous year, 1905, only 62.84 % of the total railway stock 
paid any dividends at all. The average rate of the dividends 
that were paid being less than 6 %, and of the funded debt, 78 % 
paid less than 6 %. 

It has time and again been pointed out that it is a fallacy to 
suppose that the adjustment of rates has anything whatever to do 
with capitalization. Traffic officers have repeatedly stated under 
oath that in the fixing of rates the capitalization of their 
respective roads has never been a factor in the consideration. 
In any event, how is a ' ' correct ' ' valuation of the property of a 
railroad to be arrived at as a basis for rate making ? Are rails 
and locomotives purchased at the low prices of ten years ago to 
be appraised on the basis of those prices or upon the vastly 
higher prices of to-day ? Are railroad valuations to go up and 
down as prices go up and down and rates to rise and fall in the 
same ratio ? 

The rate is but one factor that enters into the amount of 
revenue. The volume of traffic is the other. Could a Govern- 
ment Commission that adjusts rates according to capitalization 
also adjust them to commercial needs? How could the rates on 
each of the numerous commodities of commerce that are now so 
adjusted that each commodity finds a market be adjusted to this 
end on any other basis ? Any other adjustment would mean 
that the marketing of commodities — that function which is the 
essence of commerce, of benefit alike to the producer and the 
consumer — either would not be considered at all, or that it would 
not be a primary consideration. 

The laws of this country at this time insist that there shall be 
no combination in restraint of trade. Without at this time 
touching upon the anomalies in these laws it is proper to ask, 
what effect the adjustment of rates according to the valuation of 
a railroad property would have upon the competition between the 
railroads. Between the commercial centers A and B are two 
railroads, No. 1 and No. 2, each having towns of more or less 
importance along its line, but each depending in large measure 
upon the share which it obtains of the through traffic between 
A and B. One railroad has been built along level country and 



20 Johns Hopkins University Circular [230 

therefore has cost less than the other, which has been constructed 
over mountains and across chasms. Are the rates on railroad 
No. 1 to be lower than those on railroad No. 2 ? If so, all of 
the through traffic will go over the first railroad and the second 
will be obliged to derive its entire revenue from the local traffic 
upon which it will be obliged to impose still higher rates. 

Suppose that railroad No. 1 be not of the most advanced type, 
either in construction, equipment, or methods of operation, while 
railroad No. 2, under efficient administration, has spent enormous 
sums in the improvement of its track and structures, for the 
provision of expensive and efficient equipment, and in developing 
its methods to the highest standard. In this case, while the 
valuation of railroad No. 1 would be far less than that of railroad 
No. 2, the second railroad would be able because of its efficiency 
and developed methods, to haul traffic at less expense per ton or 
per train load. Are the rates of No. 1 to be made lower than 
those of No. 2 in proportion to the valuation ? If so, a premium 
will be placed upon the unfortunate and the backward, the 
incentive toward development and improvement will be stifled. 
The earnings of railroad No. 2 would not only be diminished, but 
the industries along its lines, by having to bear a greater pro- 
portion of the expense for the operation, and the maintenance of 
the railroad would be handicapped in competition with the 
industries on railroad No. 1. 

These are no supposititious cases. They find conspicuous 
illustration in the entire trunk line situation between Chicago 
and New York, in the situation between Chicago and New 
Orleans, and in greater or less degree in the situation between 
any two or more important commercial centers of the United 
States. 

In what field of industry at this time is the price of the pro- 
duct determined by the capital or the capitalization of the produc- 
ing plant ? Products have to be disposed of for what they will 
bring in the market. If the total revenue is below the cost of 
operating and maintaining the plant, it will go into bankruptcy. 
Above that point its success depends largely upon the skill with 
which its products are made and the ability with which they are 



231] The Economic Seminary, 1906-1907 21 

marketed. The success of a railroad largely depends upon the 
success with which its rates and its facilities are adjusted to the 
needs of the market. When a manufacturing plant is driven 
into bankruptcy it may be dismantled, but a railroad has to run 
and to be run as a railroad. If by adjusting rates according to 
valuation one of two competing railroads is forced into bankruptcy, 
it means a receivership. What adjustment of rates will be allowed 
to it then ? Will it in turn be allowed to force its competitor 
into bankruptcy ? If rates are made in accordance with valua- 
tion, what will be the effect upon the railroad which, because of 
poor location, lack of hoped-for development, unforeseen change in 
the currents of traffic, or other reason, has struggled along for a 
generation without paying any dividends whatever, only being 
able under the play of economic forces to keep in operation ? 



BENEFICIARY FEATURES OF THE IRON MOLDERS' UNION 
OF NORTH AMERICA. 

By J. B. Kennedy. 

The Iron Molders' Union was the second American trade union 
to adopt a national system of benefits. The history of benefits 
in the Iron Molders' Union may be briefly summarized : The 
Iron Molders' Beneficial Association of North America, founded 
July, 1870, was dissolved in July, 1882 ; a superannuation fund, 
established in July, 1874, was abolished on January 1, 1879 ; a 
" sinking fund," created in July, 1878 for the payment of death, 
and, after July 1882, of disability benefits, was changed in 1886 
to a beneficiary fund ; in 1896, a national sick benefit system was 
inaugurated ; in 1897, an out-of-work relief plan was put into 
operation ; and finally, in 1899 the amount of the death and dis- 
ability benefit was graded according to the length of membership. 

The wisdom of associating a beneficiary feature with the pro- 
tective function was for many years a subject of grave considera- 
tion on the part of the National Union. The primary aim of the 



22 Johns Hopkins University Circular [232 

leaders of the union has been to develop a strong protective 
organization. Early in the history of the union, however, the 
national officials recognized that a system of benefits would 
eventually play a prominent part in strengthening the union. 
President Sylvis, as early as January, 1866, expressed the opinion 
that the time was ripe for the adoption of a beneficiary plan. In 
December of the same year the editor of the Iron Molders' 
Journal expressed the same view in more decided terms : "We 
for a long time gave the cold shoulder to the idea of making the 
International Union benevolent, not because we were opposed to 
the principle, but because we doubted the practicability of such 
a measure at that time." At the same time, he warned the 
organization against endangering the protective side by adding 
beneficiary features, and as a matter of fact, the national union 
has arrived at a well rounded beneficiary system only by a 
series of experimental steps. 

The first of these experiments was the "Iron Molders' Benefi- 
cial Association of North America." This association, inaugu- 
rated on October 1, 1870, provided death and disability benefits 
for any journeyman molder in good standing in any local union 
under the jurisdiction of the National Union. It was a volun- 
tary association, operated on the assessment plan, under which 
each member contributed fifty cents on the death of a member, 
forty cents of which was paid to the decedent's heirs and ten 
cents for the general expenses of the Association. After twelve 
years of unsatisfactory administration the Association dissolved 
in July, 1882. The cause of its failure was a general lack of 
interest leading to too frequent assessments. The compulsory 
feature, the fundamental principle of every successful benefit 
system, was absent. 

A second phase in the development of the benevolent idea 
began with the creation, in July, 1878, of a "sinking fund" from 
which a $100 death benefit, and after July, 1882, the same 
amount in case of permanent disability, was paid. Participation 
in this benefit was required of all members of the organization. 
In July, 1886, this " sinking fund " was changed to a benefit 



233] The Economic Seminary, 1906-1907 23 

fund and thus the present death and disability benefit assumed a 
definite and permanent form. 

The experimental stage may be regarded as passed in 1886. 
Since that time, the union has for twenty years been slowly 
elaborating its beneficiary system. 

The system of benefits in the Iron Molders as it stands in the 
year 1906 is divided into three parts: The payment of a 
definite amount in case of death or permanent disability of a 
member in good standing, a weekly sick benefit for a definite 
number of weeks during any one year, and relief during unem- 
ployment for a limited period. 

The union provides that upon the death or total disability of 
a member — total disability consisting of total blindness, paralysis, 
the loss of an arm or leg, or both — a definite sum, the amount 
depending upon the period of continuous good standing, shall be 
paid to the designated beneficiary. The benefit for a member in 
continuous good standing from one to five. years is $100 ; from 
five to ten years, $150 ; for fifteen years and over, $200. 

Members sick or disabled in such a manner as to prevent them 
from attending their usual trade are paid $5.25 per week after 
the first week's sickness or disability, provided the member has 
been a contributing member for not less than six consecutive 
months and does not owe more than twelve weeks' dues. The 
sickness or disability must not be the result of intemperance, 
debauchery, or other immoral conduct. The aggregate amount 
which a member may draw as sick benefit in any one year is 
$68.25 ; that is, the benefit for thirteen weeks. 

The out-of-work relief is not in the nature of a cash payment, 
but is an exemption from payment of weekly dues for a period of 
not more than thirteen weeks in any one year. The total aggre- 
gate in exemption dues for any one year, therefore, may be not 
more than $3. 25. 

The administration of these benefits rests partly upon the 
national union, partly upon the subordinate unions. The line of 
division in administration is determined by the character of the 
benefit. In the case of sick benefits and out-of-work relief there 
is need of weekly adjustment, — reports of sickness and unem- 



24 Johns Hopkins University Circular [234 

ployment, examination of applications for aid, and payment of 
weekly allowances or issue of weekly stamps. These details 
require constant supervision, and satisfactory results can best be 
secured by employing the local union as the agent of the 
National Union. Consequently the National Union has reserved 
to itself exclusive control in settling death and disability claims. 
The funds for the payment of death and disability claims are 
held by the national treasurer, and are subject to the order of 
the national secretary countersigned by the national president. 
On the approval of a claim, the national secretary forwards the 
amount direct to the claimant. The funds for the payment of 
sick benefit and for reimbursing the national treasury for out-of- 
work stamps issued to the subordinate unions are held by the 
treasurers of the local unions. 

To be eligible to the weekly allowance for sickness the mem- 
bers must notify the financial secretary of his union within one 
week from the beginning of sickness, otherwise benefits begin 
only from the date the union receives official notice. The 
financial secretary must in all cases vouch for the member's 
standing on the books of the union, while the visiting committee 
are required by weekly visits to report once a week the condition 
of the member in question. In addition, the local unions are 
privileged to require a physician's certificate as to the date, 
nature, and cause of the sickness. On his authority a warrant 
is drawn on the treasury for the regular weekly allowance. 
Where weekly meetings are not held, the trustees have authority, 
on recommendation of the entire sick committee, to draw on the 
treasurer for two weeks' benefits. 

The local union also administers the out-of-work relief. Here, 
as in case of sick benefits, the national organization specifies the 
conditions under which relief may be granted to the unemployed. 
The member must report in person the date of the beginning of 
his idleness at the first regular meeting of his union after the 
idleness began. Thereafter the member must report in person 
to the financial secretary at every meeting of the union, and for 
every week of idleness after the first two weeks the financial 
secretary must insert an out-of-work stamp in the member's 
receipt book. 



235] The Economic Seminary, 1906-1907 25 

In order to provide revenue for the several benefits, the 
national union allocates a certain per cent of the weekly dues 
into separate funds for each benefit. Of the twenty-five cent 
dues, the local unions forward ten cents per member per week 
to the national treasurer. Sixteen per cent of this amount, or 
one and six-tenths cents per member, is placed in the death and 
disability fund for the payment of death and disability claims. 
The local unions retain eight cents per member per week as a 
fund for the payment of sick and out-of-work benefits. Of this 
amount, 12J%, or one cent per member per week is used for 
out-of-work relief and seven cents for sickness. The financier 
of the national union keeps a record of all members receiving 
out-of-work stamps and for each stamp allowed the member, 
receives a credit of eighteen cents. To reimburse the national 
treasury for this credit, each local union, upon the order of the 
national financier, must forward, quarterly, to the national 
secretary, twelve and one-half per cent of the sick benefit fund. 
For each consignment of stamps to a local union the national 
secretary draws from the out-of-work fund a sum equivalent to 
the value of these stamps at the rate of eighteen cents each. 
This sum is apportioned at the rate of ten cents per stamp to the 
monthly fund of the national union and eight cents per stamp to 
the sick relief fund. 

From 1895 to 1905, inclusive, it cost the National Union 
yearly an average of fifty -one cents per member to meet death 
and disability claims and $2.18 per member to pay sick claims. 
From 1898-1905, inclusive, the Union spent nine cents per 
member per year to maintain out-of-work relief. Seventy-three 
per cent, of all dues apportioned for benefit purposes goes to the 
sick fund, while twenty-seven per cent, is divided between death 
and disability and out-of-work. 

The advantages accruing to the Union from the system of 
benefits are of two kinds : in the first place, the benefits to the 
men from the pecuniary assistance, and secondly, the aid fur- 
nished the Union in the discharge of its protective functions. 
Up to June 30, 1905, the National Union had paid $437,607.83 
in death and disability benefits, aud with the close of the year 



26 Johns Hopkins University Circular [236 

June 30, 1906, $1,254,286.50 had been paid in sick benefits 
and an equivalent of $58,242.50 in out-of-work stamps in 
exemption from dues. The receipt of these amounts has aided 
materially in maintaining the union men upon a higher economic 
basis. In this development, the Union as a whole has been 
benefited. The iron molding interest has been concentrated, 
centralized government has been furthered and the powers of 
the Union as a factor in collective bargaining have been 
strengthened. 



TEADE UNIONISM IN BALTIMORE BEFORE THE 
WAR OF 1812. 

By T. W. Glocker. 

During colonial times and during the decade immediately 
following the Revolution, conditions in the United States were 
unfavorable to the growth of trade unions. Manufactured com- 
modities were largely imported from Europe ; and articles pro- 
duced in America were usually made on the plantation or in the 
home. Three industries, however, namely the making of hats, 
the manufacture of boots and shoes, and the building of ships 
had attained some proportions even in colonial times ; and, in all 
three, the distinction between employers and the class of per- 
manent employees or wage-earners was beginning to be sharply 
drawn. Moreover, in the large cities, the same differentiation 
was also taking place in such distinctively urban industries as 
house-building or printing. In each of the large cities of the 
American seaboard, we find, therefore, towards the close of the 
eighteenth and the beginning of the nineteenth centuries, the 
journeymen, engaged in these various industries, organizing them- 
selves into associations for the purpose of bargaining collectively 
with their employers. 

The history of trade unionism in Baltimore during the period 
from 1800 to 1812 is illustrative, in many respects, of the simul- 
taneous movement in the other large Atlantic seaports, Boston, 



237] The Economic Seminary, 1906-1907 27 

New York, and Philadelphia. The various industries mentioned 
above, were, at that time, being actively carried on in this city. 
Printing and house-building, here as in other large towns, gave 
employment to many workers. The making of hats was a flour- 
ishing industry. The fast sailing clippers built in Baltimore 
during this period are mentioned in every industrial history. 
There were also a number of boot and shoe manufacturers who 
claimed ■ ' to sell, at lower prices, shoes of equal or better quality 
than those imported from the New England States." These 
boots and shoes were, moreover, made not only for the local 
market, but also for export into the Western Country or to the 
West Indies. Prior, therefore, to the war of 1812, Baltimore 
journeymen employed in these various industries were forming 
trade societies. Since, however, our information concerning 
these early associations is chiefly gleaned from vague and casual 
references in contemporary newspapers, it is sometimes difficult to 
determine their exact nature. It is possible, for example, that 
a few of these early trade societies existed not for industrial but 
for benevolent purposes, giving financial aid to sick members, 
and, upon the death of members, helping the widow. 

The boot and shoe makers were organized certainly some years 
prior to 1809 under the title "Journeymen Cordwainers' Society 
of Baltimore." They numbered at that time more than two 
hundred and seventy members, and were apparently as aggressive 
in the maintenance of their industrial rights as the sister societies 
of the craft which existed about this time in New York and 
Philadelphia. In 1809, the "republican" or "democratic" 
party, which, in Baltimore, was composed largely of the working 
classes, decided to celebrate the Fourth of July by a huge indus- 
trial parade. In this procession, the cordwainers took part, 
wearing white aprons on which were painted the cordwainers' 
arms — three goat heads — and bearing aloft banners on which 
were represented their patron saints, Crispin and Crispiana, the 
first holding a boot and the second a shoe. 1 

1 It is interesting to note in this connection that the name of St. Crispin 
figures in the title of the first national organization of boot and shoe 
workers, formed in this country in 1869. It was known as the Grand 
Lodge of the Knights of St. Crispin. 



28 Johns Hopkins University Circular [238 

In the same year, certain members of the cordwainers' society 
of Baltimore were, like their fellow craftsmen in Philadelphia and 
New York, brought to trial for criminally conspiring to compel 
their employers to discharge journeymen not members of the 
society. One of the cordwainers indicted was found guilty by the 
jury on the matter of fact. The judge, to whom was left the 
question of law, apparently took the case ' ' under advisement, ' ' 
as was frequently done in common law cases when the offense was 
not considered serious, and, so far as the records show, never 
imposed a sentence. The counsel for the prosecution steted the 
other indictments, that is, withdrew the charge with the right to 
renew it should the parties repeat the offence, or should other 
circumstances at any time justify. 

The trial of the Baltimore cordwainers excited considerable 
comment in the local newspapers. By some, it was feared that 
the verdict would prove a death blow to every organized society. 
Indeed, it is barely possible that the difficulty of carrying out 
strikes or other strategic industrial measures without conflict 
with the common law principle of criminal conspiracy may have 
been one of the causes which, from this time forth, induced trade 
societies in various parts of the country to abandon their indus- 
trial aims, or, at least, to conceal them under benevolent activi- 
ties. Since the mechanics belonged, for the most part, to .the 
' ' republican ' ' party, while the lawyers and professional classes 
were largely federalists, some "democratic" or "republican" 
papers of Baltimore also sought to make political capital out of 
the trial, using it to illustrate how the lawyers, imbued with 
English monarchical doctrines, were attempting, under the 
guise of precedent from the English common law, to deprive the 
people of their liberties. 

A society of hatters also existed in Baltimore at this time ; 
and the hatters, to the number of one hundred and twenty, took 
part in the Fourth-of-July parade of 1809. Two of the motto- 
banners borne by the hatters in this procession, reflect the dual 
activities of their society. The one read : ' ' With the industry 
of the beaver, we support our rights." The other declared : 
' ' We assist each other in time of need. ' ' 



239] The Economic Seminary, 1906-1907 29 

Concerning unions in the ship-building trades, nothing definite 
can be said. There was a Rope Makers' Association, and also, 
it would seem, unions of ship-carpenters and ship-joiners. But 
what were their purposes or general character, it is impossible, 
with our present information, to say. 

Organizations also existed among the Baltimore building and 
printing trades prior to the war of 1812. The society of printers, 
known as the Baltimore Typographical Society, was in existence 
some years before the outbreak of that war. In the procession 
of 1809, the printers marched together with the bookbinders, 
the paper-makers, and the letter-founders. All wore on their 
hats the motto, "By union, we prosper"; and this motto, 
declares a contemporary account of the parade, had reference to 
the associations of paper-makers, letter-founders, printers, and 
bookbinders. It is possible, therefore, that, not only the 
printers, but also the paper-makers, the letter-founders, and 
bookbinders were organized at this time. 

Similarly, we find an organization of the carpenters of the 
city and precincts of Baltimore as early as 1800. Associations 
also existed among the journeymen plasterers and among the 
journeymen painters and colormen. But whether they were 
designed to secure better conditions of employment for the 
members, it is difficult to say with certainty. The Journeymen 
Bricklayers' Beneficial Society of Baltimore was formed some 
time prior to 1809, and, as far as its title indicates, would 
appear to have been a purely fraternal and benevolent asso- 
ciation. 

On the other hand, the master bricklayers and masons were 
not wholly inactive, but were cooperating for the promotion of 
their own peculiar interests. In a Baltimore newspaper of the 
period, a notice to master bricklayers and masons was issued by 
a ' ' committee, apointed at a general meeting of the undertakers 
in the above branch of the business to regulate and prepare a 
book of rates and prices. ' ' The committee stated that the duty 
assigned to them had been performed ; and they now called a 
general meeting of all builders, either in brick or stone, to act 
upon their report. In the light of present-day popular con- 



30 Johns Hopkins University Circular [240 

demnation of agreements between manufacturers or railway- 
magnates to fix rates and prices, one statement of the committee 
is interesting. "It is presumed," declares the committee, 
1 ' that no undertaker can feel himself hurt in point of respect- 
ability by meeting with his fellow workmen in order to accomplish 
an object so much wanted." 

Other associations existing at this time were the Tailors' 
Society of Baltimore and the Society of Coachmakers. The 
latter organization included in its membership such branches of 
the trade as the coach-trimmers, harness- makers, sadlers, lace- 
weavers, and platers. 

One conclusion, may, perhaps, be drawn from even this cursory 
and limited study of early trade union conditions. It is that 
trade unionism in this country during the period from about the 
beginning of the century to the war of 1812 had probably at- 
tained greater proportions than is generally supposed. Following 
the war, there came a decline in the labor movement, whether 
due to industrial reaction simultaneous with the removal of res- 
trictions from the importation of foreign commodities, or to other 
causes. But some of these early unions in Baltimore and other 
cities undoubtedly struggled along, until, with the wonderful 
industrial growth and prosperity in the decade from 1830 to 
1840, American trade unionism awoke to new life. 



THE CIGAKMAKEKS' "BLUE LABEL." 
By E. E. Spedden. 

The Cigarmakers' International Union was the first organiza- 
tion of workmen to introduce the device of a trade-union label. 
But before the ' ' Blue Label ' ' of the national organization ap- 
peared labels were issued by local unions of cigarmakers in San 
Francisco and St. Louis. 

Under the Burlingame Treaty of July 28, 1868, great numbers 
of Chinese came to this country. There were in 1878 over 4,000 



241] The Economic Seminary, 1906-1907 31 

Chinese engaged in the manufacture of cigars on the Pacific 
Coast and of this number only 150 were outside of San Francisco. 
In the same year there were only 500 white cigarmakers in San 
Francisco. In 1881 there were only 179 white workers as against 
8,500 Chinese engaged in making cigars in San Francisco. 

The effect of this coolie labor upon the industry was marked, 
inasmuch as the wage earned by them was never more than 
seventy cents a day and often as low as thirty cents. In 1874 a 
local of San Francisco adopted a "White Label " as a means by 
which to fight the product of the Chinese. In 1876 ten cigar- 
makers started an independent organization known as the 
Cigarmakers' Association of the Pacific Coast. They were 
joined by fifty manufacturers who employed only white labor, 
and these manufacturers and the ten cigarmakers initiated a plan 
of label agitation. 

The workmen were forced to this fight for their own protection 
against the coolies, and the manufacturers were compelled to 
compete against those firms which employed ' ' yellow labor, ' ' and 
were being constantly underbidden by such firms. The effect of 
coolie labor may be realized from the fact that in November, 
1881, the Chinese cigarmakers were putting upon the market 
from sixteen to twenty million cigars each month. 

The local of San Francisco which had first used the ' ' White 
Label ' ' was a union body and the Cigarmakers' Protective 
Association of the Pacific Coast was a non-union body, protection 
against the Chinese served as an influence to bring these forces 
together for the attainment of a common end. The "White 
Label " was supported with great enthusiasm by the sentiment of 
the Pacific Coast as a bulwark against the competition of Asiatic 
upon American standards of life. 

August 17, 1879, Union 144 of St. Louis adopted a "Red 
Label ' ' in order to fight a reduction of wages in that city. The 
cigarmakers aroused the workmen in other crafts to boycott all 
cigars not bearing this label. The St. Louis cigarmakers were 
so successful that many counterfeits came upon the market. 

The use of the label as a device of trade-unionism had by 1880 
proved so successful that at the Chicago convention held in 



32 Johns Hopkins University Circular [242 

September of that year, Representative Frederick Blend of Local 
54, of Evansville, Indiana, introduced a resolution for ' ' issuing 
trade-marks or labels suitable to be placed on the box in a con- 
spicuous place. ' ' The resolution was carried and became a part 
of the constitution of the International Union. 

The cigarmakers were energetic in this policy, and from 
1881 to 1889 label agitation was the principal activity of the 
Union. The adoption of the "eight-hour" work -day in 1886 
and the "out of work" benefit in 1889 was partly due to the 
militant spirit aroused by the campaign for the demand for the 
union label. The ' ' Blue Label ' ' was used against prison labor 
with great success for a while. Attempts were made to have the 
United States revenue stamps withheld from prison goods, but 
failing in this, the "Blue Label" became the sign of "free 
workmen" in the cigar trade. 

The non-union cigar manufacturers of Chicago on May 15, 
1895, determined to adopt a label for their goods and called it 
the ' ' Old Glory Label. ' ' This label never came into general 
use and was soon abandoned because the ' ' Old Glory Label ' ' 
made the boycott declared against this class of goods the more 
effective. 

In 1897 President Strasser proposed to allow the stogie makers 
to use a ' ' Purple Label ' ' under certain conditions. This label 
might be employed upon application of 80% of the paying mem- 
bers of any local. The label for the stogie makers was never in 
use because the cigarmakers did not own it and therefore could 
not protect it from being counterfeited. For this reason the pro- 
posal of the International President, when submitted to vote in 
August, 1897, was defeated by a vote of 2,232 for and 4,826 
against. The ' ' Blue Label ' ' has come at times into bitter con- 
flict with the seal of the Knights of Labor and the emblem of 
the Western Labor Union. 

Since 1880 the membership of the cigarmakers has increased 
until in 1906 it numbered 47,000 members. When the label 
was adopted there were but 2, 729 organized cigarmakers in this 
country and in 1896, 28,000. This increase in membership has 
undoubtedly resulted in large measure from the increased demand 
for the union label. 



243] The Economic Seminary, 1906-1907 33 

The label boom of 1886 was due less to the efforts of the cigar- 
makers, than to the great enthusiasm for the labor movement 
prevalent at that time. ' ' The enthusiasm displayed by the new 
recruits to the labor army in demanding union made goods 
almost staggered the jobbers and dealers in cheap goods " declared 
Mr. Gompers in his report to the convention of the American 
Federation of Labor of 1906. From 1885 to 1887 there were 
used on boxes of one hundred cigars 2,651,500 labels and on 
boxes of fifty cigars, 28,190,700 labels ; an increase of 20,509,200 
labels during the years 1883-1885. Throughout the depression 
of 1896 the cigarmakers used about 15,000,000 labels annually, 
and since 1896, 18,308,680 labels have been used on the average 
each year. 

The cigar industry of Pennsylvania, largely non-union, has 
worked much harm to the sale of the International Union's 
product. In that State in 1906 there were 30,000 cigarmakers, 
of whom but 6,000 were union men. The rate of wages has been 
extremely low and the trade loosely organized. Many irregu- 
larities have been discovered as regards the use and issue of the 
Blue Label, and many cigars come from this state bear a 
bogus label or none at all. In the South the agricultural classes 
are becoming more interested in the union label, and the sale of 
non-union cigars has diminished. The Label Leagues of Ohio, 
Wisconsin, New York, Nebraska, Connecticut and Massachusetts 
have done much to create a demand for the ' ' Blue Label ' ' and 
to bring before the consuming public this artifice of American 
trade-unionism. 

The Blue Label stands opposed to "inferior, rat- shop, prison, 
coolie and tenement-house work." It has achieved a fair 
measure of success, but only after bitter opposition without and 
many dissensions within the ranks of trade-unionists. 



34 Johns Hopkins University Circular [244 

THE MINIMUM WAGE IN BALTIMOEE TEADE UNIONS. 
By D. A. McCabe. 

The maintenance of a minimum rate of wages for all its 
members is one of the chief objects of the trade-union. If all 
the members were equally valuable to the employer the deter- 
mination of a rate to be insisted upon as a minimum for all would 
not be difficult. Even where the workers vary in productive 
capacity, the maintenance of one minimum commends itself as 
the obvious union policy, if there be no difference in the character 
of the tasks performed. The union would find it very difficult 
to grade men according to variations in degree of skill unless 
those variations appeared in the performance of special kinds of 
work. Where, however, such special branches of a trade are 
followed by members of the union, the latter has to face the 
alternative of so adjusting its scale that it supports directly the 
wage received in each branch, or of contenting itself with the 
maintenance of a flat minimum, which leaves the followers of the 
more highly skilled branches to bargain for themselves. The 
objections to abandoning to individual bargaining the deter- 
mination of the wage level of any important group of members 
have led, in many cases, to the establishment of a graduated 
wage scale. 

Unions which adopt a piece scale are able to secure for the 
members rates of wages in proportion to their individual capacity, 
whether the character of the work to be done be uniform or 
varying. The Glass Bottle Blowers' Association establishes by 
joint national agreement with the employers' associations a highly 
complicated scale covering all classes of work. The wage of the 
stove molders in the Iron Molders' Union is similarly determined. 
The Cigarmakers also enforce a piece scale, but not by national 
agreement. Other unions have both a piece and a day scale. 
The Wood Lathers work according to a piece scale where the 
character of the building permits, and by the hour where it does 
not. The Paperhangers have both a piece and a day scale, but 
the policy of the union is to enforce the piece scale throughout as 



245] The Economic Seminary, 1906-1907 35 

soon as possible. The opposite policy is seen in the machinery- 
molding branch of the iron molding trade, where the union is 
trying to secure a day scale for those still working on the piece 
system. The Typographical is another union which, though in 
favor of the daily wage system, still retains along with the day 
scale a piece scale for a few compositors in book and job offices. 

One of the simplest types of a differentiated minimum time 
scale is that maintained by the Horseshoers. This union provides 
one scale for the floor-men and a higher one for the men working 
at the fire. The Pressfeeders have a minimum for feeders to 
two-color cylinder presses higher than that for the other feeders. 
This union at present also maintains a separate scale for job press- 
men who are members, but the latter will probably soon be 
absorbed by the Pressmen's Union. The day scale of the 
Typographical Union presents a greater variety. In book and 
job offices there are separate minimum rates for machine opera- 
tors, machine tenders, foremen, and for " compositors, proof- 
readers, makers-up and other employees not classified." The 
scale varies in the newspaper offices from that for book and job 
offices, the machine operators getting the same wage for a shorter 
day, and the foremen, compositors, proof-readers, etc., having 
one minimum, and this higher than that in the book and job 
offices. Night work calls for a higher scale in all offices. 

An interesting graduated scale is that of the Musicians. This 
union classifies very minutely theatres, concert halls, dances, 
receptions, picnics, excursions etc., and sets different rates 
varying with the quality of the music to be furnished and the 
number of hours it is required. Every man, except the leader, 
playing on the same occasion receives the same rate. The Boiler 
Makers also maintain an ascending scale of rates. A different 
minimum is prescribed for each of the four following groups : 
(1) riveters ; (2) flue setters, chippers and caulkers, and boiler 
makers proper ; (3) layers-out, anglesmiths, fitters-up and 
fitters and finishers ; and (4) tank, pontoon and gasometer 
makers, frame turners, and flange turners. The Boiler Makers 
have also three distinct rates for workers who assist in a 
subsidiary capacity but are members of the Union, namely, the 



36 Johns Hopkins University Circular [246 

helpers, holders-on, and rivet heaters. The practice of main- 
taining a minimum rate for helpers is followed also by the 
Structural Iron Workers and the Cement Finishers. 

The effect upon the wage scale of organizing all the workers in 
a plant under the same national union, following out the idea of 
the ' ' industrial ' ' union, is seen in the case of the United 
Brewery Workmen. The brewery employees are organized into 
four locals, the Brewers, Bottlers, Drivers and Stablemen, and 
Engineers and Firemen, each of which has more than one 
minimum rate. The Brewers have two, the Engineers and 
Firemen three, and the Bottlers and the Drivers and Stablemen 
four each. 

The adoption of a minimum rate or rates does not exhaust the 
activities of a trade-union in regard to the wage scale. It must 
see to it that the scale is not infringed. Where the union settles 
its scale by joint agreement the payment of the scale is guaran- 
teed by the employers, but where it is not secured by collective 
bargaining the union itself must prevent its members from 
working below the rate. If the union is able to enforce the 
closed shop, it can protect the wage rate by shop rules ; other- 
wise it must rely on the adherence of its members to rules 
prohibiting ' ' rushing, ' ' cutting wages, performing a more highly 
paid class of work without receiving the wage set for it, etc. 
The qualifications for membership established by the union also 
have an important relation to its minimum scale. 



THE MOLDING MACHINE. 

By Edwin T. Cheetham. 

About 1880 a device for facilitating the work of ramming flasks 
appeared on the market and was tried out by many founders 
who did the class of work for which it was designed — light, 
shallow castings. It was known asa " squeezer," was worked 
by a hand lever and was designed for bench molding. This 



247] The Economic Seminary, 1906-1907 37 

machine supplemented ramming the drag and cope by hand, an 
operation consuming more time and strength on the part of the 
molder than any other. The nature of the machine's operation 
required a plate pattern, which was lifted by hand. The other 
operations were similar to hand molding. 

The introduction of this machine made little impression in 
molding circles ; its scope was limited to the class of castings 
produced by bench molders, and it was operated generally by 
men not out of their apprenticeship. Furthermore, it was only 
partially successful, and the scrap -pile attested the fact that the 
machine was not yet out of the experimental stage. 

In its wake came the introduction of other types of molding 
machines, of more pretentious parts, notably the ' ' Tabor ' ' and 
" Pridmore," designed to supplement hand ramming and pattern 
drawing on floor work. Steam or pneumatic power was applied, 
and one machine and operator could do the work of three 
molders. 

The molders ignored the machine. They refused to work on 
it. They made no effort, except in rare instances, to exclude it 
and did not attempt to regulate its introduction. They offered 
no obstacle to its operation by unskilled workmen. Could a 
machine think ? Could a machine cut a gate, gagger a flask, 
chaplet a core ? Thus the molders fortified their belief in the 
ultimate failure of the machine ; and this belief was further 
strengthened by the uncertain attainments of the machine as 
directed by unskilled hands. 

Meanwhile the inventors and patrons of the machine strove to 
overcome its defects, stimulated by the passive hostility of the 
molders ; they strove to adapt it to the capacity of the untutored 
laborer. This led to two results, both totally unlooked for by 
the molders : it made the machine a competitor of the molder 
and created, out of cheap day laborers and roustabouts, a class of 
' ' near-molders. ' ' For, while the machine offered no workings too 
intricate for the capacity of the ordinary man, it afforded facile 
means of acquiring skill sufficient for the plainer kinds of work 
in hand molding. 



38 Johns Hopkins University Circular [248 

The machine made headway, slowly to be sure ; and the 
molders looked on with alarm as it began to invade the more 
difficult fields of work. Therefore, in July, 1889, President 
Fox recommended that a committee be appointed to study the 
molding machine and the new conditions it had created and 
report to the coming convention. Accordingly a committee 
asked, at the Indianapolis convention in August, 1889, in the 
form of resolutions, that it be the future policy of the Iron 
Molders' Union of North America to seek to establish its juris- 
diction over the molding machine and advised that its members 
be instructed "to accept jobs upon any molding machine when 
the opportunity is offered and to endeavor to bring out its best 
possibilities." This was a radical departure from the policy of 
the union, but it was recognized that the times and circum- 
stances justified it and the findings of this committee were 
unanimously approved. This policy was reaffirmed at Toronto 
in July, 1902, in standing resolution No. 38 : "That it be 
accepted as the future policy of the I. M. U. of N. A. that we 
shall seek to establish our jurisdiction over the molding machine 
operator. ' ' 

Several causes have operated to prevent the complete success of 
the new policy : (1) The molders must needs throw away much 
of the skill of their hard-learned trade and "strengthen their 
backs " when taking up machine work. (2) Molders were not 
in so much favor with employers as the laborers, the latter 
almost invariably working harder and turning out more work 
than skilled molders. (3) Many employers did not take kindly 
to the endeavor to establish jurisdiction over the machine on the 
part of those who had only recently been inimical to its success. 

However, some progress was made. In an agreement between 
the Stanley G. Flagg Company and Iron Molders' Union No. 
Ill, Philadelphia, Mr. Flagg agreed "to operate the Bryan 
Vacuum molding machine with molders, members of the union, 
under the day's work system, for a period of three weeks." At 
the end of that period if Mr. Flagg was not satisfied with the 
output, he was privileged to employ unskilled men ; meanwhile 
it was understood "that the molders while working on the 



249] The Economic Seminary, 1906-1907 39 

machine will endeavor to bring out its best possibilities." In 
the agreement between the General Electric Company and the 
Schenectady Union, ratified on May 1, 1903, the molders agreed 
to " cooperate with the foreman of the foundry in the intro- 
duction of any new or improved methods and render such 
assistance as may be in their power. The molders employed upon 
the large molding machine are to accept piece-work for such 
work. ' ' As the large power ramming machines were ' ' not 
wholly perfected mechanically ' ' the men operating them were 
not to be charged with any losses due to circumstances beyond 
their control. It was further agreed that ' ' The committee from 
the Iron Molders' Union will undertake to supply the company 
with men known as ' Machine operators, ' if necessary importing 
men. It is understood that this will not prevent the employment 
of so-called molders, if they agree to the conditions Avhich 
prevail. ' ' In clause five of an agreement between the Twin City- 
Foundrymen's Association and Unions 176 and 232, May 28, 
1903, it was agreed that " Machine molding as at present carried 
on shall not be disturbed." 

The proposition for a national agreement between the Na- 
tional Founders' Association and the Iron Molders' Union of 
N. A., submitted by the founders, in March, 1903, contained 
a provision that ' ' The right of a foundryman to introduce 
molding machines or improved appliances of any kind in his 
foundry, shall not be questioned, and it is to be optional with 
the foundryman as to whom he shall employ thereon." The 
counter proposition of the molders contained no reference to the 
machine. At a meeting of these two bodies in Detroit, April 
7, 1904, these propositions were considered, but no agreement 
was reached. 

In clause six of an agreement between the Hudson River 
Foundry Company and Local Union No. 50, Poughkeepsie, 
N. Y., in January, 1904, it was agreed "that if molding 
machines shall be placed in the shop the molders shall use the 
same to its best advantage." 

Other similar local agreements have been made, but as no 
conference of the National Founders' Association and the Iron 



40 Johns HopJcim University Circular [250 

Molders' Union of N. A. were held in 1905 and 1906, nothing 
has been accomplished toward fixing by agreement, national in 
BCOpe, the status of the molding machine. 



FREDERICK W. HILBERT. 



A special meeting of the Seminary was held on June 1, 19-06 
to commemorate the life and work of Frederick W. Hilbert, late 
fellow in Political Economy and senior member of the depart- 
ment, who died suddenly on February 17, 1906. 

Professor Hollander presided and spoke briefly of Hilbert' s 
personality and scientific promise. Professor Edward C. Arm- 
strong, Dr. George E. Barnett, Dean Edward H. Griffin, and 
Mr. James M. Motley paid tribute to the several aspects of Hil- 
bert' s life. Letters were also read from Dr. William Kirk and 
Dr. A. M. Sakolski, former fellow students. Brief reports of 
the remarks of Professor Armstrong and Dr. Barnett are 
appended : 

Professor Armstrong : ' ' My aquaintance with Frederick W. 
Hilbert was formed during my senior year at college. A renewal 
of that aquaintance began in 1897 with the organization of a 
local alumni association of our college, and from that time on I 
had frequent opportunities to observe him closely in various sur- 
roundings. In the midst of them all, Hilbert himself did not 
change, except in a steady development of qualities manifest from 
the first. Of an orderly mind, quiet, faithful, and persistent, he 
early formed his life-plans. Having chosen teaching, he was 
determined to equip himself thoroughly for the best work in his 
profession. Obstacles constantly in the way did not in the least 
alter this determination. When about to enter the Johns Hop- 
kins, he had the offer of a promising and lucrative position as 
head of a secondary school ; a position his previous experience 
made him eminently suited to assume. As he was past thirty 



251] The Economic Seminary, 1906-1907 41 

years of age, and hampered by financial obligations, some of his 
friends urged him to give up his university course and to enter 
the field already open to him, but he did not waver, preferring 
fewer years of fruition, and perhaps less remuneration, rather 
than to abandon the ideals he had formed. Modest and unpre- 
tentious, he nevertheless had a conviction that he could accom- 
plish something in the work of his preference. The few short 
years that followed were amply long to vindicate the soundness 
of this confidence. 

"Courteous, tender-hearted, and quietly genial, Hilbert's 
friendship was prized by all who knew him. His most characteris- 
tic qualities were his modesty and his absolute sincerity. 

1 ' He has been called away suddenly as he was about to see the 
fruits of his years of unrelaxing preparation, and we have lost 
the contributions he would have made to knowledge ; but there 
remains with us the inspiration that comes from a life in which 
opportunity was not neglected and obstacles were but an incentive 
to sturdy effort." 

Dr. Barnett : ' ' The scientific work of Mr. Hilbert had 
centered in his trade union studies and his published writings are 
a direct outgrowth of his dissertation work. A chronological list 
of these writings will best serve to indicate the direction which 
his investigation had taken and the point at which most 
unfortunately his inquiry was terminated : — 

"(1) 'Trade Agreements in Baltimore,' an abstract of a 
Seminary paper, was published in the Johns Hopkins University 
Circular, for April, 1903; (2) 'Employers Associations,' an 
abstract published in the Circular, for May, 1904 ; (3) 
'Adjustment of Wages in the Foundry Trade,' an abstract 
published in the Circular, for June, 1905 ; (4) A notable 
review of Gilman' s ' Methods of Industrial Peace, ' in The 
Nation for February 24, 1905 ; and finally in January, 1906, 
his most considerable pieces of work, (5) ' Employers' Associa- 
tions in the United States ' and ' Trade-Union Agreements in 
The Iron Molders' Union,' both published in the cooperative 
volume issued by the Seminary under the title ' Studies in 
American Trade Unionism.' 



40 Johns Hopkins University Circular [250 

Molders' Union of N. A. were held in 1905 and 1906, nothing 
has been accomplished toward fixing by agreement, national in 
scope, the status of the molding machine. 



FREDERICK W. HILBERT. 



A special meeting of the Seminary was held on June 1, 1906 
to commemorate the life and work of Frederick W. Hilbert, late 
fellow in Political Economy and senior member of the depart- 
ment, who died suddenly on February 17, 1906. 

Professor Hollander presided and spoke briefly of Hilbert' s 
personality and scientific promise. Professor Edward C. Arm- 
strong, Dr. George E. Barnett, Dean Edward H. Griffin, and 
Mr. James M. Motley paid tribute to the several aspects of Hil- 
bert' s life. Letters were also read from Dr. William Kirk and 
Dr. A. M. Sakolski, former fellow students. Brief reports of 
the remarks of Professor Armstrong and Dr. Barnett are 
appended : 

Professor Armstrong : ' ' My aquaintance with Frederick W. 
Hilbert was formed during my senior year at college. A renewal 
of that aquaintance began in 1897 with the organization of a 
local alumni association of our college, and from that time on I 
had frequent opportunities to observe him closely in various sur- 
roundings. In the midst of them all, Hilbert himself did not 
change, except in a steady development of qualities manifest from 
the first. Of an orderly mind, quiet, faithful, and persistent, he 
early formed his life-plans. Having chosen teaching, he was 
determined to equip himself thoroughly for the best work in his 
profession. Obstacles constantly in the way did not in the least 
alter this determination. When about to enter the Johns Hop- 
kins, he had the offer of a promising and lucrative position as 
head of a secondary school ; a position his previous experience 
made him eminently suited to assume. As he was past thirty 



251] The Economic Seminary, 1906-1907 41 

years of age, and hampered by financial obligations, some of his 
friends urged him to give up his university course and to enter 
the field already open to him, but he did not waver, preferring 
fewer years of fruition, and perhaps less remuneration, rather 
than to abandon the ideals he had formed. Modest and unpre- 
tentious, he nevertheless had a conviction that he could accom- 
plish something in the work of his preference. The few short 
years that followed were amply long to vindicate the soundness 
of this confidence. 

"Courteous, tender-hearted, and quietly genial, Hilbert's 
friendship was prized by all who knew him. His most characteris- 
tic qualities were his modesty and his absolute sincerity. 

' ' He has been called away suddenly as he was about to see the 
fruits of his years of unrelaxing preparation, and we have lost 
the contributions he would have made to knowledge ; but there 
remains with us the inspiration that comes from a life in which 
opportunity was not neglected and obstacles were but an incentive 
to sturdy effort." 

Dr. Barnett : ' ' The scientific work of Mr. Hilbert had 
centered in his trade union studies and his published writings are 
a direct outgrowth of his dissertation work. A chronological list 
of these writings will best serve to indicate the direction which 
his investigation had taken and the point at which most 
unfortunately his inquiry was terminated : — 

"(1) 'Trade Agreements in Baltimore,' an abstract of a 
Seminary paper, was published in the Johns Hopkins University 
Circular, for April, 1903 ; (2) 'Employers Associations,' an 
abstract published in the Circular, for May, 1904 ; (3) 
'Adjustment of Wages in the Foundry Trade,' an abstract 
published in the Circular, for June, 1905 ; (4) A notable 
review of Gilman' s ' Methods of Industrial Peace, ' in The 
Nation for February 24, 1905 ; and finally in January, 1906, 
his most considerable pieces of work, (5) ' Employers' Associa- 
tions in the United States ' and ' Trade-Union Agreements in 
The Iron Molders' Union,' both published in the cooperative 
volume issued by the Seminary under the title ' Studies in 
American Trade Unionism.' 



42 Johns HopJcins University Circular [252 

"While the work thus enumerated was excellent and has 
received high praise, our estimate of Mr. Hilbert as an investi- 
gator should be based less perhaps on actual achievement than on 
his method of work. 

1 ' Foremost among his characteristics as an investigator was his 
eagerness in the pursuit of data. This led him constantly to 
widen the field of his observation in order to secure additional 
light on the subject under investigation. When he began his 
trade union studies in the autumn of 1902, he proposed to make 
a study of trade agreements and his earliest article noted above, 
indicates this line of work. As he went farther into the subject 
it became evident that some knowledge of employers' associations 
and their working was necessary for the successful accomplishment 
of his task. The result was his work on employers' associations 
in the United States, probably the most valuable of his published 
papers and the most adequate account of these organizations 
heretofore written. By degrees, his task widened until he had 
set before himself as a subject 'Collective Bargaining in the 
United States.' 

' ' In the study of trade unionism, much depends upon the power 
to ascertain facts by means of personal interview. Mr. Hilbert 
showed himself peculiarly adept in the use of this scientific instru- 
ment. Something in him, whether his strong manliness or his 
evident sincerity of purpose, opened the way to the secret places of 
the trade union and the employers' association. Those of us who 
have followed him have had frequent evidences of the high regard 
in which he was held by the officials of trade unions and of 
employers' associations with whom he had come in contact. 

' ' Finally, in all his work, he showed the finest spirit of cooper- 
ation. When the ' Bibliography of American Trade Publica- 
tions ' was undertaken as a Seminary effort, Hilbert gave to its 
preparation, as much time and energy as to his own work. None 
of us at work in the field brought back such large stores of 
material for the common good. He was always ready to under- 
take special inquiries apart from his own investigation, and these 
inquiries he prosecuted with zeal. 



253] The Economic Seminary, 1906-1907 43 

"In the last few months before his death, he had begun to put 
together the results of his three and a half years' work. That he 
did not live to finish his dissertation was a loss not only to us, 
his friends and admirers, but to the scientific knowledge of 
American trade unionism." 



JOHNS HOPKINS UNIVERSITY STUDIES 

IN 

Historical and Political Science 

(Edited by H. B. Adams, 1882-1901) 

J. M. VINCENT, 
J. H. HOLLANDER, W. W. WILLOUGHBY, 

Editors. 



The University Studies will continue to publish, as heretofore, the 
results of recent investigations in History, Political Science, and Politi- 
cal Economy. The new series will present topics of interest in the 
early political, social and economic history of Europe and the United 
States. The cost of subscription for the regular Annual Series, com- 
prising about 600 pages, with Index, is $3.00 (foreign postage, 50 cents). 
Single numbers, or special monographs, at special prices. 

For the year 1907 } the titles given below are now announced; other 
numbers will follow from time to time. 

INTERNAL TAXATION IN THE PHILIPPINES. By John S. Hord, Col- 
lector of Internal Revenue, Manila. 
THE MONROE MISSION TO FRANCE, 1794-1796. By B. W. Bond, Jr. 
MARYLAND DURING THE ENGLISH CIVIL WARS. By Bernard C. 

Steiner. * 

TRADE AGREEMENTS IN THE UNITED STATES. By Frederick W. 

Hilbert. 
THE APPRENTICE AND AMERICAN TRADE UNIONS. By James M. 
Motley. 

The set of twenty-four series of Studies is now offered, uniformly 
bound in cloth, for library use, for $80.00 net. 

All business communications should be addressed to 

The Johns Hopkins Press, 

Baltimore, Maryland. 



44 Johns Hopkins University Circular [254 

PROCEEDINGS OF SOCIETIES. 



Scientific Association. 

May 17, 1906. 

Experiments on the Behavior of the Eye. By G. M. Stratton. 

Selective Reflection in the Infra Red. By A. H. Pfund. 
November 22, 1906. 

The California Earthquake of April 18, 1906. By H. F. Reid. 

Recent Improvements in Color- Photography. By H. E. Ives. 
December 20, 1906. 

On the bearing of the Absorption Spectra of Solutions on the present 
Hydrate Theory. By H. C. Jones. 

On the Behavior of the Starfish. By H. S. Jennings. 
January 24, 1907. 

Recent Work on Cancer. By W. G. MacCaldum. 

Fluorescence and Absorption. R. W. Wood. 
March 21, 1907. 

The Structure of California. By Andrew C. Lawson. 

The Limitations of the Microscope. By H. E. Ives. 

Philological Association. 

October 19, 1906. — Two hundred and thirty-second regular meeting. Pro- 
fessor Gildersleeve in the chair. Thirty -six members were present. 
History and Civilization of Ancient Sinope. By D. M. Robinson. 
Note on Marston's ' Malcontent.' By K. F. Smith. 
November 16, 1906. — Two hundred and thirty-third regular meeting. 
Professor Gildersleeve in the chair. Thirty-five members were 
present. 
The Date of Chaucer's Birth. By A. A. Kern. 
An Early Appearance of the Writing ai for oi in French Texts of the 
17th Century. By H. C. Lancaster. 
December 21, 1906. — Two hundred and thirty-fourth regular meeting. 
Professor Gildersleeve in the chair. Twenty members were present. 
The Superman. By T. S. Baker. 

Metrical Lengthening in the Homeric Poems and the Bucolic Diae- 
resis. By G. M. Bolling. 
January 18, 1907. — Two hundred and thirty-fifth regular meeting. Pro- 
fessor Gildersleeve in the chair. Thirty members were present. 
The Title of Boccaccio's Decameron. By J. E. Shaw. 



255] Proceedings of Societies 45 

The Redaction of the First German Bible. By W. Kurrelmeyer. 
February 15, 1907. — Two hundred and thirty-sixth regular meeting. 

Professor Gildersleeve in the chair. Thirty-two members were 

present. 
The Liturgical and the Comic in Goethe's Faust. By H. Wood. 
The Cairo Genizah. By W. Rosenau. 
March 15, 1907. — Two hundred and thirty-seventh regular meeting. 

Professor Gildersleeve in the chair. Twenty-nine members were 

present. 
Un-Homeric Elements in the Medieval Story of Troy. By N. £. 

Griffin. 
The Tagalog Ligature and Analogies in other Languages. By F. R. 

Blake. 

Historical and Political Science Association. 

November 9, 1906. 

Present Conditions of Historical Science. By J. M. Vincent. 
The New Political Science Review. By W. W. Willoughby. 
Spargo's Socialism. By T. W. Glocker. 

Evans' Calendar of Transcripts, 1572-1773 (Virginia). By D. S. 
Freeman. 
December 14, 1906. 

Economic and Political Conditions in Haiti, St. Thomas, Antigua and 

Guadeloupe. By J. H. Hollander. 
Howard's The German Empire. By R. G. Campbell. 
Berard's Relations of Church and State during the Revolution. By 
S. L. Ware. 

January 25, 1907. 

Work of the Historical Bureau of the Carnegie Institution. By J. F. 
Jameson. 
March 1, 1907. 
Studies in the Economic History of Tennessee. By St. George L. 
Sioussat. 
April 5, 1907. 

American Sectionalism, with special reference to its bearing on 
party history and its economic influence. By Frederic J. 
Turner. 
Brodrick's Political History of England, 1801-1837. (Hunt and 

Poole Series. ) By W. T. Laprade. 
Thompson's From Cotton Field to Cotton Mill. By J. B. Kennedy. 
Leacock's Elements of Political Science. By J. F. Cremen. 



46 Johns Hopkins University Circular [256 

Baltimore Naturalists' Field Club. 

October 15, 1906. 
Election of Officers : 

E. A. Andrews, President. 
P. H. Friese, Vice-President. 
K. P. Cowles, Secretary. 
Chairman of Botanical Section, D. S. Johnson. 
Chairman of Zoological Section, Caswell Grave. 
Chairman of Geological Section, C. K. Swartz. 
Fungi found around Baltimore. By P. H. Friese. 
November 19, 1906. 

Methods employed by the Maryland Shellfish Commission in the 
Survey of Oyster Keefs. By Caswell Grave. 
December 11, 1906. 

Anatomy and Behavior of the Water Beetle. By O. E. Bransky. 
Island Formation in the Eegion of Beaufort, N. C. By I. F. Lewis. 
Grafting of Trees. By F. H. Blodgett. 
January 15, 1907. 

Life History, Anatomy and Habits of the Common Water Beetle 
found about Baltimore. By E. A. Andrews. 
February 11, 1907. 

Nesting Habits of various Birds. By G. C. Embody. 



THE JOHNS HOPKINS PRESS 

has in preparation for early issue two more volumes of the 
Albert Shaw Lectures on Diplomatic History : American 
Diplomacy under Tyler and Polk, by Dr. Jesse S. Reeves ; 
and International Law and Diplomacy of the Spanish- 
American War, by Professor E. J. Benton. 

The previous volumes of this series have been the Diplomatic 
History of the Southern Confederacy by Professor 
James M. Callahan (now out of print), and the Diplomatic 
Relations of the United States and Spanish America 
by Professor John H. Latane. 



257] Current Notes 47 

CURRENT NOTES 



University Lectures and Assemblies 

The third course of lectures on the Herter foundation was given in the 
auditorium of the physiological building, October 8, 9, 10, by Sir Almroth 
E. Wright, M. D., F.K.S., Pathologist of St. Mary's Hospital, London. 
The subject was the "Therapeutic Inoculation of Bacterial Vaccines and 
its application in connection with the Treatment of Bacterial Disease." 

The Percy Turnbull Memorial Lectures on Poetry were given in McCoy 
Hall, February 14-26, by Eugen Kuhnemann, Ph.D., Professor of Phi- 
losophy in the University of Breslau. The lectures were given in German, 
and the subject was "Deutsche Dichtung in der Zeit ihrer grossten Bliite." 

Professor Maurice Bloomfield delivered six lectures in McCoy Hall 
on the " Religion of the Veda, the Ancient Religion of India," November 
5-16. 

A course of five lectures on Biblical Archaeology, having especial reference 
to the Identification of Sites, was given in McCoy Hall, December 4-17, by 
Dr. Frederick J. Bliss, late Field-Officer of the Palestine Exploration 
Fund. 

Professor John Dewey, of Columbia University, gave ten lectures on 
"The Development of Greek Philosophy," between December 13 and 
January 19. The course was given in Levering Hall, and was open to the 
public. 

Public lectures were given in McCoy Hall by members of the Faculty, 
January 7 to February 8, as follows : The Historic Peninsula of Virginia : 
Impressions of a Summer Traveler, by Dr. Gilman ; The Persistence of 
the Greek Element in Modern Culture, by Professor Gildersleeve ; A 
Trip to Alaska, by Professor Clark ; Light and Color in their Relation to 
Painting, by Professor R. W. Wood ; A Speculative Defense of Poetry and 
a Verification of the Defense, by Professor Bright (two lectures) ; The 
Labor Problem, by Professor Hollander ; Radium and Radioactivity, by 
Professor Jones ; The Blue Mountains of Jamaica, by Professor D. S. 
Johnson ; Oyster Culture in Maryland, by Professor Grave ; The Salton 
Sea of Lower California, and some Volcanoes visited in 1906, by Professor 
Reid ; A Day with a Greek Householder, by Dr. D. M. Robinson. 

The annual course of four lectures on American History, by Dr. James 
Schouler, was delivered March 5, 6, 7, 8, the specific subject being, 
" Ideals of the American Republic." 

Dr. Theodore C. Foote has continued his course in the study of the 
Bible, for persons not connected with the University, giving twenty lessons, 
Saturday mornings. 



48 Johns Hopkins University Circular [258 

The following lectures have also been open to the public : 

Mrs. John M. Glenn, of Baltimore, on " Personal Experiences in 
Relief Work in San Francisco," October 24. 

Professor Pierre Janet, of the College de France, two lectures (in 
French) on "Mind in Medicine," November 19 and 21. 

Professor Charles C. Blackshear, of the Woman's College, Balti- 
more, on "Structures of the Buddhists in Ceylon and of the Jains and 
Muhammadans in India, January 4. 

Professor John B. Henneman, of the University of the South, two 
lectures entitled respectively "The Beginnings of Shakespeare's Art: The 
Literary Influences of Shakespeare's Early Period " and "The Height of 
Shakespeare's Art: The Themes of Tragedy," January 21 and 23. 

Professor Ernest C. Moore, of the University of California, on ' ' Educa- 
tion as a University Subject," February 23. 

The two hundredth anniversary of the birth of the Italian poet, Carlo 
Goldoni, was observed February 27 by a lecture on his life and works by 
Dr. James E. Shaw. 

Professor Alexander T. Ormond, of Princeton University, on "Ten- 
dencies in American Thought, ' ' April 9. 



The formal acceptance and installation of the Warrington Dispensary 
Library of Medical Classics and the Ahlfeld Teratological Library, pre- 
sented respectively by Mr. William A. Marburg and Mr. Francis M. Jencks, 
took place in the auditorium of the physiological building, on the evening 
of January 2. Addresses were delivered by Dr. Osier, Dr. Welch, and 
Dr. J. Whitridge Williams. 

The degree of Doctor of Laws was conferred upon Sir William Henry 
Perkin, the distinguished English chemist, before an assembly composed 
of the Trustees, Faculty, Students, and friends of the University, in McCoy 
Hall, November 7. 

The Tenth Annual Inter-Class Debate and the Contest in Public Speaking 
by undergraduates were held in McCoy Hall, March 8. 

The Sixth Annual Intercollegiate Debate was held in McCoy Hall, April 
19, between students of this University and the University of Virginia. 



Other Lectures, Meetings, and Conventions in the 
University Halls 

Under the auspices of the Baltimore Society of the Archaeological Insti- 
tute of America the following lectures have been given in McCoy Hall : 
Rev. F. E. Hoskins, of Beirut, Syria, on "Recent Journeys into Moab and 
Edom, February 7 ; Professor W. P. Mustard, of Haverford College, on 
"Roman Remains in the South of France," April 15. The annual meeting 
of the Society was held in the Donovan Room, November 15. 



259] Current Notes 49 

Before the Municipal Art Society, lectures have been delivered in McCoy- 
Hall, as follows: Mr. Royal Cortissoz, on "Velasquez," November 16; 
Mr. F. Hopkinson Smith, on ' ' Pessimism and Eealism in Art and Litera- 
ture," January 8; Mr. Ernest Fenollosa, on "Chinese and Japanese 
Painting," March 18 ; Mr. John Quincy Adams, on " Municipal Art in 
the United States," April 17. 

Eev. Dr. W. W. White, of New York, gave eight weekly lectures on 
the Bible, under the auspices of the Young Men's Christian Association of 
Baltimore, in McCoy Hall, January 21 to March 11. 

A lecture was given before the Engineers' Club of Baltimore, by Mr. C. 
W. Hendrick, Chief Engineer of the Sewerage Commission, on the " New 
York Subway," in McCoy Hall, December 8. 

A course of five illustrated lectures on " Italy" was delivered in McCoy 
Hall, February 14 to March 21, by Mr. J. Frederick Hopkins, Director 
of the Maryland Institute Schools of Art and Design. 

Mr. W. H. Mallock, of England, gave three lectures on Socialism, in 
McCoy Hall, March 14, 15, 16, under the auspices of the National Civic 
Federation. 

Dr. C. F. Langworthy, of the Agricultural Department at Washington, 
lectured in McCoy Hall, February 28, on ' ' Recent Nutrition Investi- 
gations." 

The annual meeting of the Federated Charities of Baltimore was held in 
the Donovan Room, November 8, the annual public meeting in McCoy 
Hall, November 15, and a joint meeting with the St. Vincent de Paul 
Society in the Donovan Room, March 4. 

Meetings of the Educational Society of Baltimore were held February 21 
in the Donovan Room, and on April 19 in Levering Hall when the Hon. 
Edmer E. Brown, U. S. Commissioner of Education, lectured on 
" National Aspects of Education." 

Mr. E. C. Hutcheson, of the Peabody Conservatory of Music, gave a 
piano recital in McCoy Hall, March 19, for the benefit of the Scholarship 
Fund of the Woman's College Alumnae, and again April 15, in behalf 
of the Light Street Free Kindergarten. 

The Baltimore Branch of the American Institute of Bank Clerks held 
their annual meeting, with a lecture, in McCoy Hall, March 15. 

A lecture before the Childrens' Play Ground Association was given in 
Levering Hall, April 15. 

The following meetings have also been held : 

The Maryland Branch of the National Red Cross Society, in the Donovan 
Room, November 6. 

The Farmers' League of Maryland, in the Donovan Room, December 20. 

The Maryland Society for the Prevention and Relief of Tuberculosis, in 
McCoy Hall, February 12. 

The Medical and Chirurgical Faculty of Maryland, in McCoy Hall, 
February 28. 



A Reprint of Economic Tracts 



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The proposed series will consist of the following tracts : 

(1) A Discourse of Trade. By Nicholas Barbon. London, 1690. 

(Ready.) 

(2) Several Assertions Proved, in order to create another species of 

money than gold and silver. By John Asgill. London, 1696. 
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(3) Discourses upon Trade, principally directed to the cases of the 

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(4) England's Interest Considered, in the increase of the trade of 

this kingdom. By Samuel Fortrey. Cambridge, 1663. 

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1. Three Letters on 'The Price of Gold.' By David Ricardo, 1809. 

2. An Inquiry into the Nature and Progress of Rent. By T. R. 

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3. Essay on the Application of Capital to Land. By Sir Edward 

West, 1815. 

4. A Refutation of the Wage-Fund Theory. By Francis D. Longe, 

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:Zec 

908 No. 5 

THE 

JOHNS HOPKINS 
UNIVERSITY CIRCULAR 



THE 

ECONOMIC SEMINARY 
1 907-08 



Baltimore, Maryland 

Published by the University 

Issued Monthly prom October to July 

May, 1908 



[New Series, 1908, No. 5] 
[Whole Number 206] 



Entered, October 21, 1903, at Baltimore, Md., as second clas3 matter, under 
Act of Congress of July 16, 1894. 



MMkSMtlst'. im 



JOHNS HOPKINS UNIVERSITY CIRCULAR, No. 206 



AY, 1908 



CONTENTS 

PAGE 

The Economic Seminary, 1907-08 1 

i 

The Taxation of Tangible Personal Property in Balti- 
more. By Jacob H. Hollander, 3 

Territorial Jurisdiction of the International Typographi- 
cal Union. By George E. Barnett, ,11 

Trade Union Agitation for Direct Legislation. By T. W. 
Glocker, 19 

Concerning the Distribution of Freight Cars. By Logan 
G. McPherson, 23 

Union Agreements for the Regulation of the Use of the 

Label. By Ernest R. Spedden, ■ / \7 

The Standard Rate in the Garment Workers. By D. A. 

McCabe, 31 

The Closed Shop in the Granite Cutters' International 

Association of America. By F. T. Stockton, . . 39 

The Boot and Shoe Workers and Convict Labor. By A. 0. 

Mullen, 43 

Labor Laws in Maryland . By H. Wirt Steele, ... 53 



Henry Newell Martin. Tribute by William H. Howell, . . 47 



THE 

JOHNS HOPKINS 
UNIVERSITY CIRCULAR 

New Series, 1908, No. 5. MAY, 1908 Whole Number, 206 

THE ECONOMIC SEMINARY, 1907-1908 

Edited by Professor J. H. Hollander and Associate 
Professor G. E. Barnett 



During the current academic year, the Economic Semi- 
nary has continued its investigation of American trade 
unionism. In the summer of 1907 each member of the 
Seminary carried on field work in connection with the 
particular phase of the subject in which he was interested. 
The summer work was fruitful also in adding materially 
to the large collection of trade-union publications in the 
possession of the University. Material progress has been 
made in prosecuting the inquiries already begun, and 
certain new lines of investigation have been undertaken. 
The chief of these are : The closed shop, trade union- 
ism and convict labor, labor legislation in Maryland, polit- 
ical activities of American trade unions. 

Two monographic studies submitted by members of the 
Seminary in part fulfillment of the requirements for the 
doctor of philosophy degree are now in press for issue in 
the Johns Hopkins University Studies in Historical and 
Political Science, XXVI Series, as follows : "The Govern- 



2 Johns Hopkins University Circular [310 

ment of American Trade Unions," by T. W. Glocker, 
Ph. D., and "The Beneficiary Features of American Trade 
Unions," by J. B. Kennedy, Ph. D. 

The record of the proceedings of the Seminary, and ab- 
stracts of certain papers presented are appended : 

Oct. 9 — Report of the summer's field work, by Professor Hol- 
lander, Dr. G. E. Barnett, Dr. T. W. Glocker, D. A. McCabe and 
E. R. Spedden. 

Oct. 16 — "Taxation in Baltimore," by Professor Hollander. 

Oct. 24— "The Rise of the Local Union," by Dr. T. W. Glocker. 

Oct. 30— "The Early Typographical Societies," by Dr. G. E. 
Barnett. 

Nov. 7 — (a) "Municipal Taxation," by Professor Hollander; 
(&) "Some Impressions of American Election Methods," by Dr. 
Wilhelm Cohnstaedt, American Correspondent of the Frankfurter 
Zeitung. 

Nov. 13 — "The Early History of the Typographical Union," by 
Dr. G. E. Barnett. 

Nov. 21 — "The Agitation and Demand for the Trade-Union 
Label," by E. R. Spedden. 

Nov. 27 — "The Twenty-fifth Anniversary of the Charity Organi- 
zation Society of New York," by H. W. Steele. 

Dec. 11 — (a) "The Machine in the Iron Molding Trade," by 
E. T. Cheetham; (ft) "The Closed Shop in Baltimore," by F. T. 
Stockton. 

Dec. 18 — "The Wage Scale among the Garment Workers," by 
D. A. McCabe. 

Jan. 15 — "The Boot and Shoe Workers and Convict Labor," by 
A. O. Mullen. 

Jan. 29 — "The Granite Cutting Machine," by E. T. Cheetham. 

Feb. 12 — "A Review of the Decision of the United States Su- 
preme Court in Howard v. Illinois Central R. R.," by D. A. Mc- 
Cabe. 

Feb. 19 — "Membership in the Typographical Union," by Dr. 
G. E. Barnett. 

Feb. 27 — (a) "Labor Legislation in Maryland," by H. W. Steele; 
(&) "The Closed Shop in the Granite Cutters' Union," by F. T. 
Stockton. 

Mar. 12 — (a) "The Memoirs of Sir Edward West," by Professor 
Hollander; (ft) "The Initiative and Referendum in American 
Trade-Unions," by Dr. T. W. Glocker. 

Mar. 18 — "The Decisions of the United States Supreme Court 
in Adair v. U. S. and D. E. Loewe v. United Hatters," by Dr. 
T. W. Glocker and E. R. Spedden. 



311] The Economic Seminary, 1907-1908 3 

Mar. 26 — "The History of the Baltimore Brewery Consolida- 
tion," by D. A. McCabe. 

April 1 — "The Freight Rate Structure of the Southern States," 
by Logan G. McPherson. 

April 9 — "The Financing of the Union Label," by E. R. Spedden. 



THE TAXATION OF TANGIBLE PERSONAL PROP- 
ERTY IN BALTIMORE 

By Jacob H. Hollander 

One of the most astonishing facts in the recent fiscal 
experience of Baltimore is that the gross taxable basis of 
"general personalty" is now barely more than it was ten 
years ago, and the net taxable basis — arrived at by 
deducting tax-exempt manufacturing plants — is actually 
less now than it was at that time ! 

The total assessment of personalty, including "securi- 
ties," was in 1897, just prior to the general reassessment, 
138,364,558. Of this amount it is estimated that f 6,000,000 
represented "securities," reducing the assessment of "gen- 
eral personalty" to $32,364,558. With the reassessment 
of 1896-97, this rose to $37,020,838 in 1898, but thereafter, 
despite the biennial relisting of 1898, the total basis de- 
clined from $37,020,838 in 1898, to $33,164,218 in 1899, 
and to $31,857,105 in 1900. This shrinkage is not to be 
explained by the Annex exemption, since even in the old 
city limits the taxable basis was reduced from $36,258,114 
(including securities) in 1897 to $33,503,342 in 1898, to 
$30,679,346 in 1899, to $29,007,381 in 1900. A new admin- 
istration of the Appeal Tax Court and the disappearance 
of the Annex exemption (as to personalty) were reflected 
in an increase of the total basis to $36,992,526 in 1901 and 
to $40,805,295 in 1902— at which point it remained vir- 
tually stationary,— $41,123,808 in 1903, $40,275,889 in 



4 Johns Hopkins University Circular [312 

1904, 141,628,924 in 1905. Then followed an inexplicable 
shrinkage of the basis to $35,708,903 in 1906, and slow 
recovery to $36,219,659 in 1907 and $39,232,866 in 1908— a 
phenomenon which neither the destruction incident to the 
great fire of 1904 nor the conversion of associations into 
Maryland corporations can adequately explain. 

While the gross basis has remained practically station- 
ary, the value of tax-exempt manufacturing plants has 
steadily increased from $1,264,630 in 1897, to $2,999,528 in 
1902, to $4,412,951 in 1908— this last amount being no less 
than 11 per cent, of the corresponding total basis. There 
has thus been a movement of the net basis — with slight 
increase in particular years, but downward on the whole 
—from $35,213,033 in 1898 to $34,819,915 in 1908. 

This retrograde movement in gross personalty assess- 
ment is the more remarkable in that year after year, dur- 
ing the whole period, there has been large new and 
increased assessments placed on personalty. Since 1900 — 
to say nothing of the period before — the smallest 
amount of such increase for any one year was $3,465,950 
(1903), while the largest amount was $8,188,119 (1906). 
The total increase from 1900 to October 1, 1907, aggre- 
gates $44,800,399. In the last eight years therefore there 
has been put upon the tax books an additional amount of 
personalty greater than the total personal basis at either 
the beginning or at the end of the period. But, astonish- 
ing to relate, there has been abated from the personal 
assessments an amount even greater than the volume of 
new and increased assessments, so that the city has lost 
since 1900 not only every particle of benefit of the 
$44,800,399 addition, but has suffered a further reduction 
(leaving out of account increase in tax-exempt manufac- 
turing plants) of $2,240,350, being the difference between 
the gross personal basis of 1901 and 1908 respectively. 

With respect to composition, the total assessment of 
"general property" as it figures in the foregoing table is 
obviously made of two elements: (a) household effects 



313] The Economic Seminary, 1907-1908 5 

and personal belongings; and (b) mercantile stocks and 
industrial equipment. 

It is indispensable, if we are to arrive at any certain 
conclusion as to what is responsible for the remarkable 
shrinkage above noted, that we should know the relative 
amounts and tendencies of these groupings for a term of 
years. Unhappily neither the printed reports nor the 
office records of the Appeal Tax Court, although recog- 
nizing such categories, give any tabulations of their re- 
spective amounts. 

In the absence of precise tabulations it becomes neces- 
sary to make use of reasonable estimates. The gross 
assessment of "general personalty," excluding tax-exempt 
manufacturing plants, in the 1908 basis was $34,819,915. 
The estimate of the Appeal Tax Court is that one-fifth of 
this, or roughly, $7,000,000 represents household effects 
and personal belongings, and four-fifths, or roughly, 
$28,000,000 represents mercantile stocks and industrial 
equipment. 

For these figures to be of real use, we should know the 
corresponding amounts of (a) household effects and (b) 
mercantile stocks in the 1898 basis. It would then be pos- 
sible to compare the movements of the two groups during 
the intervening seven years and to form some opinion as 
to whether assessments have really kept pace, in one or in 
both, with values. But we have no means of ascertaining 
this distribution of the 1898 personal basis between house- 
hold effects and mercantile stocks, and the officers of the 
Appeal Tax Court are reluctant — and it is natural that 
they should be so — to venture any estimate of such distri- 
bution in the manner they have done with the 1908 basis. 
Accordingly it becomes necessary to adopt a somewhat 
different line of reasoning in our further argument. 

It is the opinion of the Appeal Tax Court that the total 
assessment upon mercantile stocks, as contained in the 
1908 basis, is practically 100 per cent, greater than the 
total assessments of all such stocks in the 1898 basis. In 



6 Johns Hopkins University Circular [314 

confirmation of this estimate the chief assessor has taken 
at random 56 business establishments, representing many 
different kinds and classes of mercantile activity, and 
compared their respective assessments for 1898 and 1908. 
The total personal assessments of these 56 establishments 
in 1898 was $3,147,482, while in 1908 it was $6,122,218, 
showing an increase of ninety-four per cent. If this in- 
crease be typical — and the Appeal Tax Court seems satis- 
field that it is — and if account be taken of the considerable 
number of business establishments that have come into 
successful operation since 1898, we arrive at the conclu- 
sion that the total personal assessment upon business 
houses in 1898 was virtually one-half of what it is estima- 
ted to be in 1908. The total assessment of business houses 
in 1908 is estimated to be $28,000,000, according to which 
the corresponding aggregate assessment for 1898 would be 
$14,000,000. 

This leads us to further interesting conclusions. The 
total net assessment of general personalty in 1908 was 
$35,213,033. If, in accordance with the foregoing reason- 
ing $14,000,000 of these represented business establish- 
ments — the remaining $21,000,000 must have represented 
the total assessment of household effects and personal be- 
longings. Side by side with this should be placed the 
estimate of the Appeal Tax Court that in the 1908 basis 
household effects and personal belongings represent not 
more than $7,000,000 ! 

It is an impossible strain upon the imagination to sup- 
pose that ordinary influences could effect such a decline 
in the total assessment of household effects in Baltimore 
from $21,000,000 in 1898 to $7,000,000 in 1908 ! 

As a matter of fact, the general tendency in city taxa- 
tion is for the total assessment upon household goods and 
tangible personal belongings to remain fairly constant, 
for a considerable term of years. Increase in personal 
wealth tends to take the form of intangible securities. It 
is true that in Baltimore the wear and tear of household 



315] The Economic Seminary, 1907-1908 7 

effects and the drift of city dwellers beyond the tax lines 
into the suburbs, may have tended to reduce the total per- 
sonal basis. But on the other hand there has been marked 
increase in the number of houses erected — some 6000 since 
the great fire alone — and certainly no decline in the stand- 
ard of household furnishing. On the whole, it would seem 
a very conservative assumption that the value of house- 
hold effects and personal belongings in Baltimore is not 
less than it was ten years ago. 

This general conclusion is at least illustrated by one 
scrap of evidence. When the wedge-shaped section of the 
city was "re-scheduled" in 1901-03, primarily for the pur- 
pose of assessing securities, return was also required of 
taxable general personalty. The section reviewed was 
almost exclusively a residential quarter, and the results 
obtained, marked as they were in the matter of securities, 
showed some, but no very considerable increase in the 
matter of household effects and tangible belongings. 

If it be true — and it is difficult to see how any reasona- 
ble person can gainsay the statement — that the total 
actual value of household effects and personal belongings 
in Baltimore in 1908 is at least as great as it was in 1898, 
what possible explanation is to be given of the deductions 
above reached, that whereas the valuation of such prop- 
erty in 1898 was $21,000,000, at the present time it is only 
$7,000,000 ! 

The explanation given by the Appeal Tax Court is that 
the shrinkage in the assessment of household effects is in 
reality a purging of the tax books of gross errors as to 
personalty made by the 1896 assessment and by the 1898 
revision. It may well be that this is reflected in the de- 
cline from $37,020,838 in 1898 to $31,857,107 in 1900. But 
by this latter year this process must, in net effect if not in 
actual detail, have been very far advanced; for the per- 
sonal basis had then (1900) fallen below the personal 
basis on January 1, 1897, which represented the valuation 



8 Johns Hopkins University Circular [316 

of personal property before the general assessment of 
1896. 

Undoubtedly long after 1900 and even up to the present 
time, particular assessments of household effects dating 
back to 1896-98 were abated as incorrect or uncollectable. 
But the net effect of this must, or should have been, coun- 
teracted by the assessment of new households and the 
increased value of old. It is so unlikely as to be incredi- 
ble that the errors of the initial assessment and of the 
revision of 1896-98 can explain a decline, in the matter of 
household effects, to one-third of the basis a decade later. 

I have heard no suggestion from any source that the in- 
crease in the personal basis from 131,837,105 in 1900 to 
$36,992,526 in 1901, represents a similar negligent or de- 
liberate padding of the tax rolls with fictitious assess- 
ments, or that no part of such increase, in so far as valid, 
related to personal effects. As a matter of fact, this in- 
crease of some 17 per cent, in the course of a twelvemonth 
was coincident with the reorganization of the Appeal Tax 
Court under a new municipal administration. The same 
administrative activity is seen in an increase of the 
basis to $40,805,295 in 1902, to $41,123,808 in 1903, to $40,- 
275,889 in 1904 and to $41,628,924 in 1905— this despite 
the destruction of values and the declination of business 
relations incident to the great fire. 

I have been unable to obtain any adequate explanation 
as to why the basis should have dropped back in a single 
twelvemonth from $41,628,924 in 1905, to $35,708,903 in 
1906 — an outright decline of some $6,000,000, leaving an 
aggregate for 1906 actually more than $1,000,000 less than 
in 1901. It is said that this embodies the destruction of 
taxable personalty incident to the great fire. But the tax- 
able basis of 1906 was completed a full eighteen months 
after the conflagration, by which time the replacement of 
mercantile stocks had made great progress. Moreover 
this net decline resulted, despite the fact that new and 
increased assessments were placed on personal property 



317] The Economic Seminary, 1907-1908 9 

to the amount of $8,188,119 in 1905 and $6,613,308 in 
1906.* The total assessment of personal property de- 
stroyed by the fire was $26,092,910, of which some $15,- 
000,000 was assessed to Maryland corporations, leaving 
the total destruction of what has here been described as 
"general personalty" only $11,092,912 in the first instance. 

There is similarly no adequate explanation for the very 
slow recovery of the basis from $35,708,903, to $36,219,659 
in 1907 and to $39,232,866 in 1908, the last figure showing 
the personal basis of Baltimore at the present time to be 
actually a million and a half dollars less than it was six 
years ago, in 1902. There has undoubtedly been, as for 
some years past, a loss of business assessments due to the 
conversion of partnership associations into incorporated 
companies. But the increase in the assessed valuation of 
locally held shares of Maryland corporations since 1898 
has been inconsiderable. This may in part be due to inef- 
ficient methods of corporation assessments or to the 
tendency of such shares to drift, as to taxable situs, to 
Baltimore County; but on the whole, it seems clear that 
this change in the form of business enterprise, although 
exercising an appreciable influence, is very far from ex- 
plaining the singular phenomenon with which we have to 
do. 

If the estimates of the Appeal Tax Court as to the in- 
creased valuation of business and the consequent shrink- 
age of household assessments be discarded, and our reason- 
ing be based upon an assumption that household effects 
figure in about identical amount in the basis of 1908 as in 
the basis of 1898, we arrive at equally unsatisfactory con- 
clusions. 

If the assessment of household effects be assumed to 
have remained practically constant, inasmuch as the gross 
basis has undergone comparatively little change in the 
decade, the inference must be drawn that the other class of 



♦These amounts, I am informed, are not all new assessments but largely 
reassessments, former assessments being abated. 



10 Johns Hopkins University Circular [318 

general personalty, namely, mercantile stocks and indus- 
trial equipment, has remained practically unaltered as to 
assessment. This estimate, reduced to figures, would be 
— upon the assumption that household effects are assessed 
at 17,000,000 — that the gross assessment upon business es- 
tablishments in 1898 was some $24,700,000 and in 1908 
some $26,900,000 and that the net assessment — deducting 
tax-exempt manufacturing plants — was $22,900,000 in 
1898 and $22,500,000 in 1908. 

Whether these figures be reasonable estimates or hope- 
lessly short of the mark, the essential fact remains, 
namely, that if household effects figure to no greater 
extent in the assessment basis of 1908 than in the basis of 
1898, then it is absolutely certain that there has been 
only a trifling increase in the gross assessment of business 
establishments and an actual shrinkage in their net assess- 
ment. 

The whole argument as stated above might be summed 
up briefly as follows: If the assumption of the Appeal 
Tax Court that the assessments upon business establish- 
ments have doubled since 1898 be valid, then we must 
accept the conclusion that household effects are now as- 
sessed in aggregate at practically a third of what they 
were ten years ago. If on the other hand we believe that 
household effects figure as largely in the basis of 1908 as in 
that of 1898, then we must believe that there has been an 
actual shrinkage in the net assessments of business estab- 
lishments. If, finally, our assumption be midway between 
these extremes, the element of improbability is lessened 
somewhat, but only at the expense of neglecting the opin- 
ions of the Appeal Tax Court and the important even 
though inconclusive evidence upon which such opinions 
are based. 

It is difficult to say which of these inferences is the 
most unlikely. They have only one point in common, and 
that is that they require us to believe that although the 
city is larger, the population richer, the industrial life 



319] The Economic Seminary, 1907-1908 11 

more active, the mercantile establishments better equipped 
now than ten years ago — in short, although everything 
has advanced, yet from the testimony of the tax books we 
are to admit that the tangible personal wealth of Balti- 
mre has actually receded! 



TERRITORIAL JURISDICTION OF THE INTERNA- 
TIONAL TYPOGRAPHICAL UNION 

By George E. Barnett 

The national union endeavors to enforce its rules and 
customs upon union printers only when under the juris- 
diction of some local union.* The rules of the national 
union, in so far as they relate to working conditions, are 
not binding upon a union printer working in a city or 
town in which there is no local union. The same principle 
is applied in the collection of dues. A member not work- 
ing under the jurisdiction of any subordinate union has a 
right to demand a withdrawal card. This card severs his 
connection with the union until he secures employment 
within the jurisdiction of some subordinate union. If he 
desires to retain his right to the benefits provided by the 
union, he may do so by paying national dues only. 

At any given time, therefore, the territory over which 
the national union actually exercises jurisdiction is the 
aggregate territorial jurisdiction of the local unions, but 
it also claims a potential jurisdiction over a much greater 
territory. The territorial jurisdiction, in this sense, of 
the national union is the extent of territory within which 
it claims the exclusive right to organize local unions. If 



*The national union has only one rule binding upon a union printer 
outside of the jurisdiction of some local union, viz., that he "shall not go 
to work in a town or city where no union exists, during the progress of 
a strike, without the consent of the parties engaged in a strike." (General 
Laws, 1908, Sec. 100.) 



12 Johns Hopkins University Circular [320 

the printers of an unorganized city within this territory 
organize a union unaffiliated with the national union, an 
invasion of the jurisdiction of the national union has 
occurred. 

That all local unions must be under the jurisdiction of 
the national is a theory which has developed side by side 
with the growth of centralization and the feeling of de- 
pendence upon the national union. When the local unions 
united into a national organization in 1850, they did not 
resent strongly the existence of unions not affiliated with 
the national organization. The national union was re- 
garded simply as a voluntary organization of certain local 
unions and independent local unions were treated with 
great consideration. Local unions frequently allowed their 
affiliation with the national union to lapse for consider- 
able periods. The Columbia (Washington) Society and 
the Eichmond Society existed as independent organiza- 
tions for many years after the formation of the national 
union. Both of these societies had developed important 
beneficiary functions and were reluctant to admit print- 
ers from other unions without the payment of initiation 
fees. After several unsuccessful attempts to secure the 
adhesion of the Columbia Society, the president of the 
national union in 1860 advised that a rival union be char- 
tered in Washington. The outbreak of the Civil War post- 
poned action, and in 1867 the Columbia Society volun- 
tarily attached itself to the national union. The Rich- 
mond Society received a charter in 1866. 

The force which gradually brought the independent so- 
cieties into the national union was the card system. By 
a rule of the national union no local union was allowed to 
"receive members on cards issued by any other association 
than those chartered by the national union." Members 
of independent organizations were not refused admission 
to unions affiliated with the national union but they were 
required to pay an initiation fee. The Columbia Society 
avoided conflict by not attempting to discriminate against 



321] The Economic Seminary, 1907-1908 13 

persons having cards of other unions. They were allowed 
to work in the offices controlled by the Society without 
being required to become members. As the closed shop 
was more and more strongly enforced by the unions the 
desirability of securing the privilege of working in union 
offices for travelling members without the necessity of 
paying fees became of controlling importance. 

The extent of territory over which the national union 
claimed jurisdiction was not at the outset carefully de- 
fined. The founders of the short-lived National Typo- 
graphical Association and of the National Typographical 
Union wished to bring into closer relations certain exist- 
ing unions. It happened that all these unions were loca- 
ted in the United States. In the preamble to the constitu- 
tion of the National Typographical Association it was 
indicated that the Association was to include local unions 
in the United States. The convention called in 1850 for 
considering the formation of a federal union adopted the 
name of "Journeyman Printers of the United States," and 
the constitution ratified in 1852, declared that the national 
union possessed "original and exclusive jurisdiction in all 
matters pertaining to the fellowship of the craft in the 
United States." 

The national union had hardly been established, when 
the desirability of making some arrangement for extend- 
ing the card system to Canadian printers was suggested. 
The plan first favored was to allow each local union to 
make an arrangement for a reciprocal exchange of cards. 
The subordinate unions in some cases did receive members 
by card from these unions, but the practice was by no 
means general. In 1856 the constitution of the national 
union was amended to permit the officers to issue charters 
in Canada. None of the Canadian unions applied for ad- 
mission and in 1857 the jurisdiction was again restricted 
to the United States. The matter was one of small inter- 
est except to a few northern cities. 



14 Johns Hopkins University Circular [322 

In 1860 the president of the national union decided that 
a local union should not receive the cards of any Canadian 
union except as an evidence of "honorable standing" and 
that persons presenting such cards should be charged the 
regular initiation fee. The union instructed the secretary 
to "open a correspondence with the Unions in the Prov- 
inces of Canada, Nova Scotia and New Brunswick with a 
view of bringing them under the jurisdiction of this 
National Union." The secretary could find only one union 
"possessing any practical vitality," the Toronto Society, 
and this organization showed no interest in the proposed 
alliance. 

In 1865 the national union extended its jurisdiction to 
include the "British Provinces" and the Corresponding 
Secretary was "instructed to inform the Printers' Socie- 
ties or Unions in the British Provinces that the National 
Typographical Union of the United States extended to 
them the same privileges now extended to subordinate 
Unions in the United States." The Toronto Society, one 
of the oldest in North America, after much deliberation 
and some misgiving, applied for and received a charter 
from the national union. A union was organized the 
same year at St. John, N. B. This extension of jurisdic- 
tion was recognized in 1869 by a change of the name of 
the union from "National Typographical Union" to the 
"International Typographical Union of North America." 
The card system was again the chief agency in inducing 
Canadian unions to take charters from the International 
Union. After the union definitely assumed jurisdiction 
in 1865, the member of an independent Canadian union 
was required to pay an initiation fee to secure member- 
ship in any union under the jurisdiction of the national 
union. 

For some twenty years, the jurisdiction of the union 
was confined to the "United States and the British Prov- 
inces." In 1888 when the constitution was revised the 
jurisdiction was extended to include all North America. 



323] The Economic Seminary, 1907-1908 15 

Local unions have been organized at various times in 
Jamaica, Porto Rico, Hawaiian Islands, the Philippines. 
The greater part of these unions have been shortlived 
and only a small number are now in existence. The table 
shows the number of unions, located in the various parts 
of the jurisdiction in May, 1907, and their membership : 

No. of Unions. Membership. 

Alaska 1 12 

Canada 30 2,591 

Hawaiian Islands 1 15 

Philippine Islands 1 15 

United States.... 629 42,347 

It is obvious that the jurisdiction of the Union is still 
practically limited to the United States and Canada. The 
number of printers in the other parts of North America 
is not large and the great majority of them are printers 
in Spanish. The International Union has shown no 
capacity for organizing the printers in any parts of North 
America except the United States and Canada. Mexico, 
Cuba and Porto Rico are entirely unorganized. The 
unions in the Philippines and the Hawaiian Islands are 
unions of printers who have emigrated from the United 
States. 

The Typographical Union has never had any serious dif- 
ficulty on account of sectional secessions. The most con- 
siderable schism in the union was caused by the Civil War. 
In April, 1861, the Charleston Typographical Union pro- 
posed to the various Southern unions that they form a 
Southern Typographical Union. This plan apparently 
was never carried out. In July, 1861, the Atlanta Union 
dissolved its connection with the National Typographical 
Union. The great majority of the Southern unions fol- 
lowed this example, in many cases adopting elaborate 
secession ordinances. The national union by resolution 
declared that it "still regarded the Southern unions as 
members" and "urged upon them to maintain their for- 
mer relations" with the national union. The attitude of 



16 Johns Hopkins University Circular [324 

the national union throughout was conciliatory. In 1864 
it authorized the president and secretary to use all means 
to "bring about the resuscitation of all the Southern 
Unions and their renewed affiliation with this body (with- 
out regard to former troubles) on the most liberal terms 
which in his judgment shall be deemed expedient." In 
1866 practically all the Southern unions resumed their 
allegiance to the national union. The president of the 
union was able to say u our reconstruction is complete." 

The jurisdiction of the Typographical Union over Can- 
ada has recently been disputed. In 1902 the National 
Trades and Labour Congress of Canada was organized. 
The Congress has promoted the organization of national 
Canadian unions and encouraged the secession of local 
unions from the existing national and international 
unions exercising jurisdiction over both the United States 
and Canada. The promoters of this movement have ap- 
pealed to the national pride of Canadians, but as yet with 
slight success. The great majority of Canadian unions 
maintain their affiliation with the national unions already 
existing. 

Until 1906 the printers were entirely unaffected by the 
national Canadian movement. The heavy assessment laid 
by the Typographical Union for the financing of the eight- 
hour-day strike caused considerable dissatisfaction among 
the printers in the Canadian Government Printing Office 
at Ottawa. In September, 1906, the Ottawa Typographi- 
cal Union, by a vote of 60 to 33, resolved to secede from 
the International Typographical Union. The "loyalist" 
members retained their charter and since that time there 
have been two typographical unions in Ottawa. The Inter- 
national Union sent a commission to Ottawa in October, 
1906, but the differences between the two unions were irre- 
concilable. The loyalists charge the secessionists with 
being unwilling to pay their assessment, while the seced- 
ers argue for national autonomy. The nationalist move- 
ment has not as yet caused the secession of any other local 



325] The Economic Seminary, 1907-1908 17 

unions, although efforts have been made to establish rival 
unions in other Canadian cities. 

During the history of the Typographical Union only 
one national organization has disputed its jurisdiction in 
its entirety, claiming the right to organize unions of print- 
ers in the United States and Canada. In 1884 a number of 
non-union printers working in Kansas City formed a local 
organization known as the Printers' Protective Associa- 
tion. A year later a second association was organized in 
Topeka, Kan. The local associations organized the Inter- 
national Printers' Protective Fraternity at Kansas City 
on March 15, 1886. In June of that year the chief organ- 
izer of the Typographical Union referred to the Fraternity 
as a "so-called organization of rats," and said, "It is 
composed of creatures who have been driven by public 
opinion from other localities and like all outcasts they 

herd together " The Fraternity spread rapidly to 

a considerable number of cities. In 1888 it had branches 
at New Haven and Cleveland, and in 1891 an organizer of 
the Typographical Union reported that the Fraternity 
had been driven out of Knoxville, Chattanooga and Koine, 
Ga., but that it still had local fraternities in Little Rock, 
New Orleans, Jacksonville, Montgomery, Nashville and 
Charleston. By 1891 the Fraternity appears to have 
reached its greatest extent. Three local fraternities had 
been established in California at Los Angeles, Santa Bar- 
bara and San Diego. The convention of the Typograph- 
ical Union in 1892 heard complaints of the activity of 
the Fraternity from Kansas City and Los Angeles. 

The officers of the Union have always been fully sen- 
sible of the danger of permitting a competing organization 
to exist. In 1896 President Prescott said: "During the 
term your Executive Council has been generous to the 
point of liberality in supporting the efforts of financially 
weak unions to dislodge organized renegades who may 

have infested their respective jurisdictions 

While the progress made is hardly appreciable, the 



18 Johns Hopkins University Circular [32G 

pariahs were prevented from making further depreda- 
tions and if we continue harassing this contemptuous and 
traitorous enemy, the dissipation of the commercial de- 
pression will witness the demise of the foul combination 
with its unholy aims and objects." Since 1897 the Fra- 
ternity has not shown vitality. Its operations are con- 
fined chiefly to the Pacific Coast and its strongest branch 
is at Los Angeles, where its members are employed on 
the Times. 

The hatred between the Typographical Union and the 
Fraternity has always been intense. The officers of the 
Fraternity have always shown themselves willing to or- 
ganize bands of workmen to take the situations of union 
printers. Newspaper proprietors in difficulty with the 
unions have frequently brought in from other points Fra- 
ternity printers to man their papers. The union printers 
claim that the Fraternity in reality is merely a strike 
breaking organization, and that its officers receive large 
sums of money for their services in thus securing for the 
employers at critical moments considerable bodies of 
workmen. The employer is able to say to the public, if he 
is boycotted, that he is employing unionists and that the 
difficulty is between two unions. 

The Fraternity, on its side, declares that the methods 
of the Typographical Union are vicious. Strikes, lock- 
outs and boycotts are denounced by its constitution and 
arbitration is declared to be the "best mode of settlement 
for both capital and labor." "The Fraternity does not fix 
an arbitrary scale of wages at which its members shall 

work We do not seek to lay down a cast-iron 

rule regulating the hours of work." 



327] The Economic Seminary, 1907-1908 19 



TRADE UNION AGITATION FOR DIRECT 
LEGISLATION 

By T. W. Glocker 

The last decade or more has witnessed in the United 
States a decided subsidence of enthusiasm as to the ex- 
cellences of representative government and an equally 
decided movement in the various states and municipali- 
ties towards direct legislation by the people. In a few 
far Western States — South Dakota, Oregon and Montana 
— the so-called initiative and referendum as it exists in 
Switzerland has been introduced. Under this system, on 
petition of a certain number of citizens, any law passed 
by the legislature or any measure on any subject within 
the jurisdiction of the commonwealth, may be submitted 
to the voters. In Nevada the people have not the right 
to initiate new laws, but any act of the legislature may, 
on demand of a sufficient number of citizens, be brought 
to popular vote. Illinois and Texas have the advisory 
initiative and referendum, the verdict at the polls being 
morally not legally binding on the legislature. In a 
number of states certain specific acts of the legislature, 
particularly bills authorizing an issue of bonds, must be 
ratified by the people. In practically all states amend- 
ments to the constitution must receive the sanction of 
popular vote ; and one way of increasing the direct power 
of the people over legislation, particularly in the more 
recently admitted states, has been to include in the con- 
stitution laws regulating railway rates, bankruptcy laws 
and other matters which, as statutory laws, are usually 
left wholly to the discretion of the legislature. 

To inaugurate the system of direct legislation various 
elements, such as the grangers, the reform leagues and 
the socialists, have lent their aid. But the group of men 
who have probably been most active in this agitation are 



20 Johns Hopkins University Circular [328 

the trade unionists; and it is perhaps not too much to 
say that they form to-day the very backbone of the move- 
ment. 

The attitude of the trade unionists is not difficult to 
explain. In the first place, they have been made sceptical 
of, if not hostile to the representative form of government 
by the tendency, as they would express it, of professional 
representatives to betray the interests of the laborers and 
to become mere tools of the capitalist class. At the same 
time their own success with the referendum in the inter- 
nal affairs of their organizations has naturally made them 
enthusiastic advocates of its adoption by state and muni- 
cipal governments. Some of the older American trade 
unions have, indeed, been experimenting with the system 
of direct government for the last thirty years. At the 
present time perhaps eighty out of the one hundred and 
twenty-five national unions in America make at least some 
use of the referendum. Not only amendments to the so- 
called constitution and general laws, but applications of 
local unions to declare a strike and even judicial decisions 
of the general executive board are submitted to a vote of 
the membership. 

The attitude of the union may be illustrated by a quota- 
tion from the United Mine Workers' Journal. In 1905 
the miners of District 2, Pennsylvania, and the Pennsyl- 
vania Federation of Labor adopted resolutions in favor of 
the initiative and referendum. Speaking of these resolu- 
tions, the United Mine Workers' Journal says : "It is the 
beginning of a movement to restore to the people the sov- 
ereignty which has been insiduously, but surely, wrested 
from them, until now the people are but voting machines 
to register the will of political bosses, composed chiefly of 
corporation agents. The flagrant defiance of the will and 
demands of the people is not even apologized for, nor is 
any explanation given, and those chosen as servants have 
by gross usurpation become masters." 



329] The Economic Seminary, 1907-1908 21 

"Next year," the article continues, "will come a golden 
opportunity to the grangers and trade unionists of Penn- 
sylvania. A governor and legislature are to be elected. 
Now is the time to begin preparations for the coming 
battle to restore to the people their rightful power to rule 
themselves. The Journal will from time to time attempt 
to arouse to their rights, powers and duties as American 
citizens those who have permitted this degrading state of 
affairs to flourish." 

In the above quotation reference was made to the pos- 
sibility of co-operation between the grangers and the trade 
unionists. In the struggle for direct legislation the trade 
unions have, indeed, sometimes joined hands with the 
grangers, and, where such a combination has taken place, 
success has usually resulted. It was the trade unionists, 
aided by the farmers, who secured the adoption of both 
the initiative and the referendum in Montana. It was 
the same combination of grangers and trade unionists 
which compelled the adoption of an advisory initiative 
and referendum in Texas. 

The American Federation of Labor stands pledged by 
resolutions of several conventions to the inauguration of 
the system of direct legislation, and state and city federa- 
tions in various parts of the country have worked strenu- 
ously for its adoption. Of these struggles, the agitation 
waged recently by the labor unions of Massachusetts for 
the adoption of the initiative and referendum in that 
state is more or less typical. This movement was started 
in Boston about 1900 by the Boston Central Labor Union. 
From thence, it spread to other parts of the state. 
Finally, in 1903, six hundred and seventy-four unions pe- 
titioned the legislature to submit an amendment to the 
people embodying the initiative and the referendum. 
Numerous secretaries of local trade unions and labor fed- 
erations wrote to their representatives, and committees 
from various organizations waited upon members of the 
legislature, urging them to support the measure. The 



22 Johns Hopkins University Circular [330 

bill, while it secured a majority vote, failed to poll the 
necessary two-thirds. But the vote stood one hundred 
and twenty to eighty-two, and, in no wise discouraged, 
the unions have continued the agitation. 

The method of questioning candidates which has been 
employed by the American Federation of Labor since 
1901 for securing laws favorable to the workman has also 
been successfully used by them in the fight for direct 
legislation by the people. Candidates for election to the 
state legislatures have been questioned, and under the 
threat of defeat have pledged themselves that, if elected, 
they would vote for an amendment embodying the prin- 
ciple of the initiative and referendum. It was the method 
of questioning candidates which made possible the adop- 
tion of direct legislation in Montana. It was largely due 
to the efforts of the trade unionists in questioning candi- 
dates that the legislatures of Missouri and Delaware were 
induced to submit to a vote the question of introducing 
the initiative and referendum. In Ohio as a result of the 
widespread defeat of those candidates to the legislature 
who opposed the initiative and referendum, the Senate 
was induced to vote in favor of submitting an amendment 
embodying that system of government to the people. This 
amendment was referred to the House and will be voted 
upon at the session of 1908. In Toronto, Can., and various 
cities in the United States, the system of direct legislation 
has been installed primarily as a result of the questioning 
of candidates by organized labor. 

The weight of the trade union influence added to the 
votes of other radical citizens who have become convinced 
that representative government has degenerated into a 
plutocracy of wealth seems to indicate that direct legis- 
lation through the initiative and referendum will be the 
most important "next step" in American political reform. 
One considerable obstacle to the movement looms up, 
however. The Federal constitution declares that "the 
United States shall guarantee to every State in this Union 



331] The Economic Seminary, 1907-1908 23 

a republican form of government" ; and it is thought that 
under a strict interpretation of this clause the method of 
the initiative and referendum might be declared illegal. 
Recently, the Superior Court of California held that a 
provision for the initiative and referendum in the charter 
of San Diego, Cal., was unconstitutional on the ground 
that it was "opposed to the underlying principles of gov- 
ernment in the United States. Government by the people 
through their chosen representatives is," the court de- 
clared, "the foundation stone of the republic." But no 
case has, as yet, been brought before the United States 
Supreme Court, and until then the question must remain 
undecided. 



CONCERNING THE DISTRIBUTION OF FREIGHT 

CARS 

By Logan G. McPherson 

In the great channels of traffic the great staple commodi- 
ties move in train loads, raw materials to the mills, and 
finished products from the mills to the distributing cen- 
tres; foodstuffs from the sources of supply to the dis- 
tributing centres. Radiating from the distributing centres 
are trains composed of cars, some laden with this com- 
modity and some with that, while a minor number of the 
cars may be each laden with a variety of commodities. 
This loading of various commodities in the same car is 
conspicuous in the case of local freight trains that go 
from station to station, unloading at each the small ship- 
ments consigned to it. 

Thus a main traffic channel is broken up at a principal 
distributing point into secondary channels which, through 
the retail dealers, are broken up into yet smaller chan- 



24 Johns Hopkins University Circular [332 

nels, just as the great artery of the body breaks into sec- 
ondary arteries that split again into smaller arteries. 
The course of the blood of the body, however, is always in 
the same direction, through the same arteries, and the 
volume of the blood is substantially the same day after 
day ; while the great traffic channels of the United States 
extend in various directions, crossing and recrossing. 

The volume of the commodities varies from week to 
week, from month to month, and from year to year as 
there are variations in supply and demand and fluctua- 
tions in production due to divers causes. 

A simple deduction from these conditions would seem 
to be that the railroads at all times should have enough 
cars to move all of the commodities that may be offered to 
them. If, however, they should have enough cars to 
promptly transport the maximum amount of traffic that 
may be offered at a time of maximum shipment, a large 
proportion of their cars would be idle at other and con- 
siderable periods. This applies to different months of 
the year and to different years, being most striking when 
a period of depression is contrasted with a period of 
prosperity. For example, in 1897, roughly speaking, the 
railroads of the country had about twice as many cars as 
they needed. Toward the close of 1898 every car was 
busy, and two years later there was a marked car shortage 
which continued with but little intermission until Octo- 
ber, 1907, although the number of cars was increased year 
by year practically as fast as the car factories could turn 
them out. Three months later, in January, 1908, nearly 
350,000 cars, fifteen per cent, of the freight cars of the 
country, were idle. 

In the early days the box car and the open flat car an- 
swered every purpose. Then came the car with slatted 
sides for live stock. Now there is not only the ordinary 
box car, but different kinds of box cars fitted with differ- 
ent appliances for different kinds of traffic. The open car 
is both of the flat bottom and the drop bottom variety, the 



333] The Economic Seminary, 1907-1908 25 

latter for the dumping of coal and ore. There is the 
refrigerator car for dressed meats and some kinds of 
fruit and vegetables, and other cars that are especially 
heated for use in cold weather. Every station agent has 
instructions as to what kinds of commodities may be 
loaded in this car and what kinds of commodities may not 
be loaded in that car. 

That it is not always an easy matter for the railroads 
to distribute their cars in accordance with the demands 
of traffic may be instanced by one example of many. In 
the summer of 1907 the Pennsylvania Railroad Company 
was advised that the peach crop of the Delaware and 
Maryland Peninsula would require five hundred cars. 
That number was fitted with the racks required for peach 
crates, but by the time they were ready a turn in the 
weather had reduced the peach crop, which at the best 
had likely been overestimated, to but little more than 
fifty cars. All the time that these cars had been assigned 
for what must necessarily be a prompt movement of the 
peach crop, they could have been used to excellent advan- 
tage in the grain movement. 

If the traffic currents of the different commodities moved 
at regular periods one year after another it would be diffi- 
cult enough to provide just the right number of cars at 
the right time and move them promptly, but when, as 
happened a year or two ago, because of strikes, unfavor- 
able conditions of the weather and other reasons, the 
great crops of grain, an unusual tonnage of bituminous 
coal and extraordinary quantities of merchandise all 
pressed for shipment at the same time, and fruits delayed 
in ripening demanded to be hauled to the markets before 
they perished, the already badly hampered railroads were 
simply overwhelmed. 

The railroads endeavor to obtain as accurate informa- 
tion as far in advance as possible of the demands that, 
from various sources, may be made upon them. As the 
grain is ripening on the western fields the station agents 



26 Johns Hopkins University Circular [334 

along the various railroad lines send frequent reports of 
its condition to the general offices, and men of experience 
are periodically sent out from these general offices to go 
through the grain territory. Upon the information thus 
obtained the western railroads estimate the number of 
cars that probably will be required, and endeavor to col- 
lect and store them on side tracks in the regions until 
they are needed. The movement of meats, poultry, butter 
and eggs is more nearly regular and the car distribution 
can be made with a greater degree of certainty. 

The greatest difficulty, however, in estimating and ar- 
ranging the car supply, as has been intimated, is in con- 
nection with the quickly perishable foodstuffs. The situ- 
ation is much the same, for example, in Florida and the 
Oarolinas, whence the Atlantic Coast Line brings the 
early berries and the early vegetables, aUd in the Georgia 
fruit lands, whence the Southern Railway brings the 
melons and the peaches to the north. Although repre- 
sentatives both of the railroads and of the private car 
companies go through the fields and the orchards two 
or three times during the growing period, havoc may 
be wrought with their estimates by the vagaries in which 
the weather indulges oftentimes with but short warn- 
ing, and by the various parasites that apparently spring 
into existence over night and wreck devastation through- 
out the acres. Upon the estimates obtained by those 
men not only do the railroads and the car companies plan 
the distribution of cars, but they arrange necessarily 
weeks ahead for the purchase of an adequate amount of 
ice for the refrigeration and its shipment from the north 
to the various icing stations along the different routes. 
The makers of the crates, boxes and other kinds of pack- 
ages also await the estimates of these men, before engag- 
ing the lumber and the labor necessary to run their mills, 
upon the kinds and quantities of packages which the fruit 
and vegetable growers will require. 



335] The Economic Seminary, 1907-1908 27 

Thus it happens that refrigerator cars by the hundreds 
are sent to the south, "parked" in the yards and stored on 
the side tracks that are often built directly into the 
orchards and the truck farms. When the picking period 
arrives the orchards aud the fields swarm with workmen. 
The cars are iced and loaded as rapidly as possible. 
Then they are concentrated at certain central points, the 
fruit, for example, at Atlanta, the vegetables at Rocky 
Mount. Here the cars are formed into trains that are 
run on quick schedules especially inaugurated for this 
service. 

In the truck farms and orchards in Virginia, in Louisi- 
ana and Mississippi, in New York and Michigan, in the 
truck farm and poultry farms in Texas, in the orchards 
and melon lands of Missouri and Arkansas the problems 
are much the same and their solution is along much the 
same lines. 



UNION AGREEMENTS FOR THE REGULATION OF 
THE USE OF THE LABEL 

By Ernest R. Spedden 

The use of the label may give rise to jurisdictional dis- 
putes between trade unions. When the members of the 
unions are engaged in the manufacture of the same class 
of goods, the use of the label on the product may become 
an issue between the unions and may lead to serious con- 
sequences. To avoid such difficulties agreements have 
been made between trade unions for the use of the label. 

The agreement between the Journeymen Tailors and the 
United Garment W T orkers tentatively entered into on 
October 9, 1903, at a conference in Washington between 
the representatives of the two organizations, illustrates 



28 Johns Hopkins University Circular [336 

an experimental rather than a definitive attempt to adjust 
a jurisdictional difficulty between the two unions arising 
from the fact that members of both unions work upon the 
same class of goods. 

By the terms of this agreement each union agreed not 
to boycott any clothing bearing the label of the other 
organization. The jurisdiction of the unions was deter 
mined on the basis of the selling price of the product. 
"Workmen engaged in making custom clothing for mer- 
chant tailors, either under the Journeymen Tailors' idea 
or by factory system, the selling price in the United 
States for such clothing shall average $25 and in Canada 
$18, these workmen shall come under the jurisdiction of 
the Journeymen Tailors' Union; while those workmen 
engaged in custom work under the factory system for 
merchant tailors in the United States, and the selling 
price being below $25 and in Canada below $18 on ready 
made clothing, shall come under the jurisdiction of the 
United Garment Workers' Union of America. The label 
of either organization is forbidden to firms which make 
custom clothing under the factory system and do not own 
their shops." 

The Journeymen Tailors and the Garment Workers 
were to use but one form of label on ready made clothing 
and overalls. The label of each branch of the trade was 
to be distinguished by a special stamp. The General Ex- 
ecutive Boards of the two unions were granted the power 
to adopt proper means for identification of the two differ- 
ent uses of the same form of label, inasmuch as no agree- 
ment was reached at the conference between the officials 
of the two unions as to the exact form of stamp to be used. 

Prior to 1903 the Shirt, Waist and Laundry Workers 
and the Ladies' Garment Workers were at odds regarding 
the use of the label of each organization. The American 
Federation of Labor decided in 1903 that all workers en- 
gaged in the manufacture of ladies' waists should belong 
to the Ladies' Garment Workers' Union, and the Shirt, 



337] The Economic Seminary, 1907-1908 29 

Waist and Laundry Workers were forbidden to charter 
such local unions. The Shirt, Waist and Laundry Work- 
ers refused to abide by this decision, inasmuch as both 
parties in interest had not been consulted prior to the ren- 
dering of the decision by the American Federation of 
Labor. At the 1903 convention of the Shirt, Waist and 
Laundry Workers a resolution was passed to the effect 
that the Shirt, Waist and Laundry Workers should in- 
clude cutters, washers, operators, folders, starchers, pres- 
sers, hand and machine ironers, receivers or deliverers, 
etc., and all employes in shirt and waist factories and in 
old work or custom laundries. 

In 1904 the Ladies' Garment Workers and the Shirt, 
Waist and Laundry Workers made an agreement provid- 
ing that employes in factories making both shirts and 
ladies' garments were to form themselves into their re- 
spective unions and each international union was to issue 
its label through its respective officers. All houses using 
the label of the International Ladies' Garment Workers' 
Union on washable goods were to have them laundered by 
members of the Shirt, Waist and Laundry Workers' 
Union. In cases where a factory produced both shirts 
and ladies' garments the employes were to organize 
themselves into their respective unions, if they were 
strong enough to support a union, but if they were not 
able to organize strong local unions, the proportion of 
the product, whether shirts or ladies' garments, was to 
determine the form of organization to be established; 
whether the factory should come under the jurisdiction of 
the Shirt, Waist and Laundry Workers' Union or under 
the control of the Ladies' Garment Workers' Union. 

The Shirt, Waist and Laundry Workers and the United 
Garment Workers were drawn into a dispute regarding 
the use of the label. Members of the two unions were 
employed on work which might reasonably be performed 
by members of either union. In 1904 the two organiza- 
tions realized that some steps must be taken looking to- 



30 Johns Hopkins University Circular [338 

ward the settlement of the dispute arising from the plac- 
ing of two labels on the same kind of goods. The classes 
of work on which the members of the two organizations 
were engaged overlapped only in part, and because of 
this fact the Laundry Workers resolved to relinquish any 
attempt to control the Garment Workers engaged in mak- 
ing shirts, if the Garment Workers would agree to aid in 
unionizing the laundries of the shirt factories. Nothing 
definite resulted from this resolution. Later in the year 
terms of agreement were entered into based upon a deci- 
sion of the American Federation of Labor. The wage 
scale of the United Garment Workers was made the mini- 
mum for shirt factories using the label of the Shirt, Waist 
and Laundry Workers. On shirts only the label of the 
Laundry Workers was to be used and on overalls only the 
label of the Garment Workers. 

The nature of the product determined which organiza- 
tion was to have control in what were known as "com- 
posite factories," i. e., those making both overalls and 
shirts. All factories making overalls exclusively were to 
come under the jurisdiction of the Garment Workers, and 
those factories which made shirts exclusively were to come 
under the control of the Laundry Workers' Union. In those 
factories which made both shirts and overalls the propor- 
tion of the product was to determine the jurisdiction of. 
the two unions therein, as follows : If 51 per cent, or more 
of the product was overalls, the control of the employes of 
the factory went to the United Garment Workers, and 
vice versa, if 51 per cent or over of the product was shirts. 
The General Executive Boards of both organizations were 
empowered to investigate the sanitary conditions and the 
price lists of all factories applying for the label of either 
organization and engaged in the manufacture of both 
shirts and overalls. 

In reference to membership in either union, sec. 6 of 
the agreement provides as follows : " Should a member of 
one organization secure temporary work in a composite 



339] The Economic Seminary, 1907-1908 31 

factory of the other organization their membership cards 
shall be recognized for a period of three months. If, 
however, a member remains in said factory over that time 
he shall join the organization having jurisdiction over 
said factory, subject to the local by-laws in that city 
where such application is made." 



THE STANDARD RATE IN THE GARMENT 
WORKERS 

Br D. A. McCabe 

The chief points of interest in the adjustment of the 
standard rate are grouped about the form of the rate and 
the area over which the same rate applies. The deter- 
mination of the form of the rate in itself involves several 
important matters of trade union wage policy. Among 
these the following invite special consideration: (1) the 
basis of payment adopted, whether piece or time; (2) 
the form of the time rate (if it be a time rate), whether 
? flat minimum rate or a graduated scale providing differ- 
ent minimum rates for different kinds of work or classes 
of workmen; (3) the degree to which the form of rate 
adopted secures differential wages according to skill, and 
(4) the relation between the competency qualifications for 
membership and employment at the standard rate. A 
brief discussion of these points in outline as they appear 
in the experience of the United Garment Workers, a 
union covering a trade broken into many dissimilar parts 
by advanced division of labor, may be suggestive of the 
lines along which a similar treatment ranging over the 
general trade union field would run. 

The extensive jurisdiction claimed by the United Gar- 
ment Workers of America over a trade of such composite 



32 Johns Hopkins University Circular [340 

character as the manufacture of "ready made" men's 
clothing results in the inclusion within one organization 
of several distinct groups of workers, each potentially a 
separate union. There are at least three such groups, the 
shirt and overall workers, the cutters and "trimmers'' 
(cutters' assistants), and the "tailors." The different na- 
ture of the garments and materials on which they are 
employed, and the fact that they are almost exclusively 
women make the shirt and overall workers a class apart 
from the makers of ordinary clothing. The cutters, as a 
body, are more homogeneous, better paid and longer or- 
ganized than the makers of the clothing, with whom they 
have no necessary personal connection. The occupatioa 
of "tailoring" has in fact but recently emerged from the 
sweat-shop stage, and is even yet largely carried on under 
the contract system, whereas cutting has always been 
done in the factory. 

In the making up of clothing, division of labor has been 
extended very far, even to the specialization of occupation 
in the making of a single garment. Coat makers are dis- 
tinct from pants makers, vest makers, and knee pants 
makers, and in the making of a coat, operating, finishing, 
basting, and pressing are distinct occupations. Except 
in the making of fine clothing and the making of gar- 
ments to special measure, operating, finishing, etc., are in 
the larger centers still further sub-divided, each worker 
confining himself to operating, finishing, or pressing a 
particular section of the garment. The introduction of 
this "section" system has enabled the employer to utilize 
on parts of the garment workers of comparatively little 
skill and of brief acquaintance with the work. This stage 
has been reached in the overall branch also. In the face of 
this condition the union cannot insist on a prescribed time 
of service in these branches as a condition of admission, 
but admits the workers as it finds them. It thus provides 
itself with a membership varying widely in skill. The 
problem of the determination of the standard rate is for 



341] The Economic Seminary, 1907-1908 33 

the United Garment Workers, therefore, one of framing 
scales of wages for a large number of workers in many 
different occupations, and, in some of these, differing 
greatly in proficiency. 

The problem of adjustment is very much simplified by 
the practice of organizing members into separate locals, 
wherever numbers warrant it, according to the branches 
of the trade followed. The overall workers and the cut- 
ters and trimmers almost always have their own locals. 
Within the tailoring branch there is division according to 
garment, and among the coat tailors in the large cities, 
according to the work done on the garment. In New 
York, for instance, there are separate locals of overall 
workers, cutters and trimmers, special order workers, 
pants makers, vest makers, knee pants makers, children's 
jacket makers, children's jacket pressers, (and on coats) 
operators, finishers, and pressers. In the pants makers' 
and vest makers' locals there are sub-locals for pressers. 
This division into locals according to the kind of work 
done, though not due originally in each case solely to a 
desire to give each branch or sub-local of the trade control 
over its own wage questions, has in practice that effect. 
Even where paucity of numbers forces the workers at one 
branch of the trade into a "mixed" local with one or more 
other branches, the tendency is to regard the followers of 
each branch as a separate body for purposes of wage 
determination. 

It is the individual differences in skill within the same 
branch of the trade that make collective bargaining for 
wages so difficult. The piece system naturally offers as a 
method of payment which adjusts wages to efficiency 
where the product is capable of definite measurement and 
each unit represents labor expenditure of the same quan- 
tity and quality. Many unions, however, object to pay- 
ment according to product, as tending continually to 
increase the amount of product required as a normal day's 
work for a stationary average daily wage. The United 



34 Johns Hopkins University Circular [342 

Garment Workers is one of these unions. For years its 
constitution has declared that it is the policy of the union 
to substitute a system of week work for piece work. As 
a matter of actual practice the piece system remains the 
prevailing and officially recognized system of payment in 
the overall branch and among the pants and vest makers. 
It is often accepted, too, by the pressors, and by the coat 
makers generally, where each worker operates or finishes 
the whole garment. In at least one case, that of the St. 
Louis tailors, members who had given up the piece for 
the time system returned to the former after a few 
months. Among the Lithuanian tailors the piece system 
regularly obtains in the guise of a percentage system, 
under which each operation calls for a particular per- 
centage of the price obtained by the contractor for the 
garment. 

This open retention of the piece system by the union in 
some of its most strongly organized branches, in spite of 
its declared opposition to it, is due primarily to the prefer- 
ence of the members for that system. The pants makers 
and vest makers favor the piece system as against the day 
system because of the greater freedom it allows the work- 
ers, and the opportunities it gives of earning large wages 
in the periods of rush to offset the scant earnings of the 
dull seasons. The percentage system among the Lithuan- 
ians is an instance of persistence in a racial custom which 
the national officials discourage but do not feel able at the 
present time to prohibit. In the shirt and overall branch 
the simple character of the garments and the close adher- 
ence to certain uniform types make the piece scale easy 
of adjustment, and the hold which the label gives the 
union over the manufacturers removes the fear of price 
cutting. Most of the women workers prefer the piece 
system. 

A system which is nominally a day system but which 
embodies one feature of payment by piece, to the disad- 
vantage of the worker, is the "tasks system." The task 



343] The Economic Seminary, 1907-1908 35 

is a definite quota of work to be performed each day, and 
unless the six days' tasks are finished at the end of the 
week the weekly wage is reduced in proportion to the 
worker's arrears. Fear that week work means task work 
is one of the chief reasons for the preference of many 
members for the piece system. The union has fought the 
task system bitterly, and has succeeded in abolishing it 
yery widely in its cruder forms, yet the members still feel 
its presence. President Larger in his report to the 1902 
Convention expressed this sentiment, "After all, we find 
ourselves working piece work (where so-called week work 
prevails) and giving our employers the benefit of it, and 
the men who do the most work have the steady positions." 
In many cases the members have fought back, and the 
local union, or more frequently the shop crew, has set a 
limit of output for day workers. This form of restriction 
was at one time rather common among the cutters, 
notably in New York, Philadelphia, and Rochester. The 
coat makers in Baltimore used to limit the number of gar- 
ments to be worked for the minimum rate of wages, and 
additional work could be done only if additional pay were 
given. These regulations introduced a piece system 
feature in a nominal time system to the advantage of the 
employee. The national officers have steadily opposed the 
imposition of such restrictions on day workers and have 
often expressly repudiated them in agreements. 

The placing of a limit on the amount of work which 
may be done in a day or week by the individual worker 
under the piece system destroys the differential wage 
feature of piece payment beyond the point of limitation, 
and is in effect the setting of a maximum wage. The 
imposition of a permanent maximum is usually an 
arrangement of the shop crew or a custom of the trade in 
that locality, rather than an open rule of the union. The 
Boston cutters have made the maintenance of such a 
maximum a feature of their piece system. Much more 
common are temporary restrictions on the amount of 



36 Johns Hopkins University Circular [344 

work to be done by any individual, imposed during dull 
times with the intention of securing an equitable division 
of the work among the members of the union. Provisions 
for limitations of this character are often inserted in 
agreements. 

If the standard rate is to be on a time basis, the impor- 
tant consideration is that it shall not be placed so high 
as to exclude a large number from employment under 
union jurisdiction or so low as to leave the more efficient 
members too far dependent on individual bargaining for 
their actual wages. The wider the differences in skill 
between members of the same local, the more difficult is 
the adjustment. So far as these variations correspond to 
differences in the kind of work done, they can be provided 
for by the maintenance of separate minimum rates for 
each kind. Thus the cutters' locals almost invariably 
have distinct scales for cutters and trimmers. Where the 
trade of the cutter has itself been subdivided, different 
rates for each class of cutters are commonly maintained. 
The scale of the New York and Brooklyn cutters calls for 
a $20 minimum for markers and a minimum of $24 for 
long knife cutters. In St. Louis the 1904-05 scale was 
$18 for knife cutters, $20 for markers, and $24 for 
machine cutters. The division in Buffalo is on a different 
basis, special order cutters being rated at $18 and stock 
cutters at $20. Among the coat makers there is usually 
more than one scale for operating, basting, finishing, and 
pressing. In New York, for instance, there are three 
scales for operators (second assistant operators $10, first 
assistant $16, operators $18), two for basters (assistants 
$13, baster $17), two for finishers (assistants $12, finish- 
ers $14), and four for pressers (under pressers $9, edge 
pressers $12, second grade 15, first grade pressers $18). 
In each case the class to which the worker belongs is 
determined by the part of the garment on which he works, 
not by the proficiency with which he does the work given 
him. The division into classes, according to skill, of 



345] The Economic Seminary, 1907-190S 37 

workers doing similar work, for the purpose of setting 
different rates for each class is not practiced. 

Collective bargaining by the locals for time wages goes 
no further than the establishment of minimum rates. If 
a member wishes to stipulate for a wage above the mini- 
mum he must make it a matter of individual bargaining. 
What effect the determination of the minimum has upon 
the wages of those members of superior skill who would 
ordinarily obtain more than the average rate of wages, it 
is difficult to ascertain exactly. Employers incline to the 
view that the minimum rate is also to be a maximum rate, 
and consequently are averse to going above it in indi- 
vidual cases. This opposition to paying more than the 
rate on the part of the employers and the inertia of many 
of the better workmen undoubtedly have an influence 
towards making the minimum rate the wage actually 
paid. On the other hand, the superior workman retains 
the same margin of superiority over the average that he 
had before, and under competitive conditions can ordi- 
narily force the old differential from his employer. Re- 
striction of output may, by preventing the better workmen 
exceeding the average output, keep wages down to the 
standard rate where superiority is reflected only in out- 
put, which is very infrequently the case. As a matter of 
fact many workers do get more than the minimum rate, 
how many it is impossible to say without a detailed study 
of individual wages. Moreover, many workmen who 
receive but the minimum rate in money wages obtain a 
differential in net advantages, for example, steadier em- 
ployment, extra time with "time and half" or "double 
time" pay, more agreeable work. Sometimes a local, 
instead of increasing the minimum and leaving the matter 
of differential wages to individual bargaining, will secure 
a certain percentage advance for all. 

The effect of the maintenance of a minimum rate on the 
least efficient members of the trade, inside the union and 
without, is also difficult of exact determination. There 



38 Johns Hopkins University Circular [346 

are unquestionably very many non-union workers in the 
time scale branches who receive less than the union mini- 
mum rates for the same kinds of work, but it is impossible 
to say what proportion of these are automatically ex- 
cluded from the union by the fixing of minimum rates. 
The ability to command the rate is the only practical test 
of competency enforced for admission to any of the time 
branches. There are members who are unable to obtain 
the minimum regularly, who are the last to be taken on in 
times of brisk demand and the first to be discharged when 
the working force has to be reduced. The minimum will 
thus operate to keep these, the least competent members, 
from regular employment, unless the union allows them to 
work for less than the minimum rate, or refuses to permit 
the employer to discriminate between union members in 
hiring and discharging. But the local unions will not, 
except under exceptional circumstances, allow a member 
to take less than the minimum rate unless he be an old 
man of long-standing membership. Neither is it the 
approved union policy to interfere with the employer's 
right to hire or discharge. This is felt to be an essential 
right on his part, if he is to be the judge of the compe- 
tency of his workmen. There is great jealousy of this 
power of the employer in many quarters, members fearing 
that it may be used in discrimination against workmen 
of known activity in union affairs. Locals have at times 
assumed the right to decide whether discharged members 
were competent to retain their places, and have called 
strikes to force their reinstatement. The national officials 
have repeatedly denied the claim of locals to this right, 
and on one occasion suspended a local of New York pants 
makers for a strike of this kind continued in defiance of 
their veto. 

The area over which particular rates apply varies from 
the shop to the nation. Time rates are usually the same 
for the same grades of work for all shops in the locality. 



317] The Economic Seminary, 1907-1908 39 

Piece rates, from weakness of the local union, or from 
differences in styles of garments or conditions of work, 
must sometimes vary from shop to shop. More often a 
uniform list of prices for the locality is drawn up and 
only the variations to meet minor points of difference are 
settled for each shop separately. The piece rates for vest 
makers and pants makers in the New York district are 
adjusted in this way. The price list for the shirt and 
overall branch is a national one. It is approved by the 
general convention, and then accepted in final form by 
representatives of the union and of the employers' asso- 
ciation after a joint conference. The cutters have a 
national minimum of f 18, established by resolutions of the 
general convention, but it is not strictly adhered to by all 
local unions. In the tailoring branches there is a wide 
dissimilarity in rates in different localities. Complaints 
are frequent from cities in which the higher rates are 
maintained of the competition to which they are subjected 
from places in which the same work is done by union 
members at lower rates, but as yet the movement for a 
national minimum scale has not passed the stage of ex- 
hortations and resolutions from these locals. The na- 
tional union has the right of veto on all local scales and 
may in time use this power to force a levelling up of rates 
throughout competitive areas. 



THE CLOSED SHOP IN THE GRANITE CUTTERS' 
INTERNATIONAL ASSOCIATION OF AMERICA 

By F. T. Stockton 

The principle of the closed shop, as understood in the 
granite industry, requires that every workman or journey- 
man in any yard or shop, employed at any branch of the 
trade, shall be a member of the Granite Cutters' Interna- 



40 JoJms Hopkins University Circular [348 

tional Association of America or shall be both willing and 
eligible to belong to that organization. If, then, a man 
enters a union yard and is not a member of the union, he 
is required to join after working in the yard a certain 
period. 

The closed shop is directly opposed to the non-union 
shop where only non-union men are employed. Mid-way, 
apparently, is the open shop where both union and non- 
union men are employed. The Granite Cutters to-day, 
however, are as much opposed to the open shop as to the 
non-union shop. The open shop, they declare, is but the 
first step toward the disintegration of the union and leads 
directly to the final destruction of the union in the com- 
pletely non-union shop. 

Notwithstanding the fact that the Granite Cutters 
advocate the closed shop as a basic principle of unionism, 
in its inception the closed shop has been a policy rather 
than a principle. At times when it would have been 
impracticable for the union to enforce the closed shop, the 
branches have been compelled to draw up agreements with 
employers regulating the conditions for union men but 
allowing the employer the privilege of hiring non-union 
men. But as the branches grew stronger they were prac- 
tically all able to wipe out the "no-discrimination" clause 
and provide that only union men be employed. Not until 
1902 did the large Boston branch secure this concession 
from the Boston Manufactured Association. 

At present the Granite Cutters have succeeded in "clos- 
ing" the great majority of the larger shops in the United 
States and Canada, the latest available statement giving 
the names of about 1,000 yards as being strictly union. 
Great difficulty, however, has been encountered in union- 
izing the smaller yards, especially those making monu- 
ments. These small yards usually take work at so low a 
rate that it is impossible for the proprietor to pay the 
union scale. Again, where the owner of the yard is doing 
most of the cutting, there is obviously little reason for 



349] The Economic Seminary, 1907-1908 41 

him to pay the union dues and be subject to union restric- 
tions since he receives no benefit in union wages or hours. 
Moreover, in strict union practice Granite Cutters are not 
allowed to work on marble unless they hold a card in the 
Marble Workers' Union, while most monument shops re- 
quire men who will and can cut both marble and granite 
without union scruples. This condition, also, naturally 
works against the unionizing of such yards. 

In addition to what might be called the "simple" closed- 
shop policy of the Association in requiring all the men in 
one particular yard to be union men, the Granite Cutters 
have been trying to extend their practice to the extent of 
refusing to work on any job on any part of which non- 
union men are employed. This is attempted especially in 
the case of stone from non-union quarries and yards, but 
there is also considerable agitation against union yards 
cutting stone which later goes to be finished in non-union 
yards in other localities. If such a policy could be car- 
ried out it would greatly hasten the "closing" of prac- 
tically all the independent shops in the industry. West- 
ern firms, especially, which claim they can get abundance 
of granite from fair Eastern firms, would be compelled to 
unionize their shops in order to get enough granite where- 
with to carry on their business. 

The means taken to enforce the closed shop by the Gran- 
ite Cutters are practically the same as those taken by 
other unions. Every man must be able to present to the 
shop steward, on demand, a clear card, showing dues and 
fees paid up to date. Newcomers are usually required to 
make a deposit or sign a pay-over slip to insure good faith 
provided they fail to bring their cards with them. Natu- 
rally, much responsibility for the closed shop depends 
upon the shop steward and if he is an efficient officer the 
union's policy will be well sustained. A system of fines 
and penalties is also in use to prevent union men from 
working in non-union shops and to compel observance of 
the shop rules. 



42 Johns Hopkins University Circular [350 

The Granite Cutters, in common with many other trade 
unions, consider that the closed shop must be a definite 
part of their policy because collective bargaining with the 
employer can have force and stability only so long as the 
same conditions are agreed to by, and are made for every 
man employed in a certain shop or yard. In other words, 
the union or closed shop is a more efficient instrument for 
obtaining the will and claims of all the workmen than is 
the open shop. 

For this increased efficiency there are apparently two 
reasons. In the first place, every man actively employed 
in the yard is responsible, as a union man, to his union 
and will be punished if he fails to live up to the agree- 
ment. Fines and the blacklist tend to keep the journey- 
men loyal. A single non-union man in the shop, however, 
who is not bound to an organization, might easily defy 
rules and agreements and thus afford a disastrous ex- 
ample to the union men. In the second place, if the em- 
ployer wishes to violate his agreement with the union he 
has a far more serious problem to face in the opposition of 
all his employes than in that of only a dissatisfied part. 
The closed shop by the mere intensity of the blow which it 
can strike, by its united and organized stand, is able to 
secure better conditions than the open or non-union shop 
where individual contract usually prevails. The closed 
shops of the Granite Cutters, therefore, through their shop 
rules and agreements are able to control a wide range of 
conditions such as the use of machinery, sanitary regula- 
tions, wages, hours of work, etc., while in non-union yards 
the trade has no control over such affairs. 

More particularly, however, the union considers that 
the vital thing to be secured by enforcing a closed shop is 
a restriction of the number of apprentices. Every year 
large numbers of Scotch, Italian and Spanish cutters 
emigrate to America and at once enter the different yards. 
American cutters at best seldom work steadily for more 



351] The Economic Seminary, 1907-1908 43 

than nine or ten months during the year and consequently 
foreign immigration is a cause for apprehension. 

To meet this problem the union resorts to the closed 
shop where, by strict apprentice laws, the number of men 
and boys entering the trade can be controlled. Most 
locals fix the apprentice ratio at one apprentice to a gang 
of eleven or twelve men ; while in the open shop and non- 
union shop almost any ratio may prevail, but it is always 
much below that of the union shop. 

Attempts have been made to discourage the foreigner by 
high initiation fees, yet each year he comes in increasing 
numbers. To refuse him membership would drive an 
army of cheap labor into the market where it would 
resort to "scabbing" as experience has shown. Therefore, 
the only resort of the union, if it cannot restrict immigra- 
tion, is to take in the foreign element, keep up their scale 
of wages and then debar to a large extent the native 
apprentice. 

Employers have often made the complaint that the ap- 
prentice restriction policy of the union creates a shortage 
of men in the busy spring and summer seasons, but the 
union still maintains that without some limitation upon 
the number of men entering the trade, foreign immigra- 
tion and slack winter work would sooner or later result, 
through greatly increased competition, in a rapid deterio- 
ration in the wage and in the standard of living. 



THE BOOT AND SHOE WORKERS AND CONVICT 

LABOR 

By A. O. Mullen 

There were in 1905 — according to the latest statistics 
published — 1,316 factories in which boots and shoes were 
manufactured. In these establishments there were em- 



44 Johns Hopkins University Circular [352 

ployed an average of 149,924 wage earners, who earned in 
wages, 169,059,680 and the value of whose products, 
including custom work and repairing, amounted to 
1320,107,458. 

In 1903-04, according to the report made by the Com- 
missioner of Labor in 1905, there were employed in this 
industry 5,795 convicts whose products amounted to the 
market value of $8,527,599.90. According to the same 
report, "so far as the value of product is concerned," 
boot and shoe making is the leading convict industry. 
Boots and shoes constituted 24.9 per cent, of the entire 
product of convicts engaged in all industries in prisons 
whose products exceeded $1,000 in values during the year 
preceding the investigation. It might naturally be ex- 
pected that the Boot and Shoe Workers' Union would 
have given the problem of convict labor considerable at- 
tention and such has been the case. 

The Union has repeatedly expressed itself as opposed to 
the employment of convicts in the making of boots and 
shoes. The writers in the Boot and Shoe Worker, the 
official organ of the union, declare with unanimity their 
belief that the competition of convict labor lowers the 
wages of the free workers. Especial emphasis is laid on 
the hardship worked in those cases where entire factories 
have been removed into penitentiaries. But entirely 
apart from the temporary effects due to an increase in the 
amount of shoes made by convicts, the editorials in the 
Boot and Shoe Worker advocate the diversion of the labor 
of convicts from the boot and shoe industry. 

A large percentage of this competition seems to be in 
the Western States, where probably more prison-made 
shoes, etc., are marketed than in the Eastern States. This 
is not due so much to the fact that there are more shoes 
made in the Western penitentiaries than in the Eastern 
but because a large quantity of those produced in the East- 
ern prisons are shipped to the Western markets. In addi- 
tion to this disturbance in the wholesale markets, there is 



353] The Economic Seminary, 1907-1908 45 

a corresponding amount of competition found among the 
retailers. It is complained by the Union that the com- 
petition is increased by the use of a few union-made shoes 
as a leader to dispose of prison goods. There is some 
competition also due to the fact that while prison shoes 
are almost always of a lower grade of workmanship, they 
are not infrequently composed of a better grade of 
material. This is due to the fact that labor is cheaper in 
prisons and the prison manufacturer can to some extent 
at least, make up in quality of material what he loses in 
workmanship. 

The policy of the Union is to discourage as much as pos- 
sible the purchase of prison-made goods. At the Boot and 
Shoe Workers' Convention, held in Rochester, N. Y., in 
June, 1899, an admonition against such purchases was 
made a part of the ritual in the "Order of Business in 
Local Union Meetings." At a designated time the Presi- 
dent of the Local addresses the body as follows: "Mem- 
bers should ever keep in mind their pledge to use their 
purchasing power and influence in behalf of Union 
Stamped Boots and Shoes and all other Union Label 
products. If we would build up our own Union, we must 
refuse to purchase the product of non-union and prison 
labor in any trade, thus placing ourselves in a position 
where we have a right to demand similar support from 
other Unions." 

The aggressive label agitation of the Union is directed 
quite as much against prison-made shoes as against those 
made by non-unionists. The label is urged as the only safe 
method at present in use of distinguishing the union 
from the non-union product. All prospective purchasers 
are warned against goods not bearing it, and everywhere 
trade-unionists are urged to require it as their only safe- 
guard from prison-made or any other goods except union- 
made. In 1900 a "systematic campaign of advertising" 
was conducted "throughout the United States and Can- 
ada, serving notice on the retail shoe* dealers that shoes 



46 Johns Hopkins University Circular [354 

not bearing the Union Stamp were either prison made, or 
made by non-union labor." This method of endeavoring 
to protect the Union against prison-made goods has been 
urged with greater or less energy ever since. 

Various attempts have been made by the Union to 
secure the enactment of legislation requiring that prison- 
made goods should be distinctly marked. In 1896 the 
Union passed the following resolutions: "Resolved, that 
we, the delegates of the Boot and Shoe Workers' Union, 
in convention assembled, do hereby most respectfully peti- 
tion the Legislature of this State to pass a law requiring 
all such goods to be stamped "Prison Made!" 

The best means of averting such competition would of 
course be the enactment of legislation prohibiting the 
employment of convicts at boot and shoe making. The 
Boot and Shoe Workers, judging from the numerous let- 
ters on the subject in their Journal, do not desire that 
convicts should be kept in idleness. The plan usually 
urged is the employment of convicts in other industries, 
principally the making of state and county roads. They 
feel that this and kindred occupations offer a field in 
which the competition of convict with free labor will be 
reduced to a minimum. Many of the writers argue that 
the Union should agitate the subject among the farmers, 
who, they believe, would highly favor such a plan. An 
editorial in the Boot and Shoe Workers' Journal for 
August, 1902, sets forth this plea: "Building new high- 
ways is the minimum competition and when the State 
does this work the contract system is at once abolished. 
It is clear to all students of this problem that the employ- 
ment of convicts on road building is the very best remedy 
so far." 



355] The Economic Seminary, 1907-1908 47 

LABOR LAWS IN MARYLAND 
By H. Wirt Steele 

The volume of labor legislation in Maryland is compara- 
tively small, although some statutes primarily affecting 
workingmen were enacted as early as the latter part of 
the eighteenth century. About the middle of the nine- 
teenth century a notable increase is observable in the 
number of bills affecting labor. Thus in the early fifties 
several attempts were made to secure the passage of a 
ten-hour law. Since 1884 labor has received increasing 
attention at the hands of the legislature. 

The greater part of the existing labor legislation in 
Maryland may be classified under the following heads: 
(a) the regulation of working hours; (b) sweat shop legis- 
lation; (c) sanitary and safety legislation; (d) provi- 
sions for the examination and licensing of certain classes 
of workingmen; (e) child labor legislation; (f) the law 
for the establishment of a State Bureau of Labor Sta- 
tistics. 

(a) Although no attempt has been made since 1854 to 
establish a general working day by legal enactment, a 
number of statutes have been passed applying to certain 
classes of persons or to particular industries. 

A telegraphers' eight-hour law makes it unlawful for 
any railroad company to permit a telegraph operator 
employed in spacing or dispatching trains under the block 
system to work more than eight hours in any twenty-four 
consecutive hours. The law exempts railroads running 
less than eight passenger trains a day each way, unless 
an average of twenty-eight freight trains pass each way 
each day. 

In 1892 the employment of children under sixteen years 
for more than ten hours was prohibited in any manufac- 



48 Johns Hopkins University Circular [356 

turing business in the state or in any mercantile business 
in the city of Baltmore. 

Street car employes may not work more than twelve 
hours. While this law refers in terms to horse car com- 
panies, it has been construed to apply to street car com- 
panies, whether they employ horse power or electricity. 
The act also prohibits the making of special contracts 
under which certain employes might be worked longer 
hours. 

A bill was introduced in the legislature in 1868 limiting 
the hours of work of cotton and woolen mill operatives, 
but it failed to pass the Senate, and was not formally 
enacted into law until 1884. This law provides that mill 
owners may not require more than ten hours for a day's 
work, except in defined emergencies, but is weakened by 
a clause which permits employers to make special con- 
tracts with male operatives over twenty-one years of age 
to work by the hour, compensation to be agreed upon 
between operator and operative. 

In 1884 a law was passed limiting the working day in 
coal mines to ten hours, fixing the time of beginning work 
at seven o'clock A. M. Two years later a penalty of fifty 
dollars for each offense was attached to this law. This 
law also permits special contracts, by which miners may 
work overtime, receiving extra pay for all over ten hours. 

An ordinance of the city of Baltimore provides that 
nine hours shall be the working day of all mechanics and 
laborers employed by the Mayor and City Council, unless 
the number of hours shall have been fixed at less than nine 
hours. This ordinance does not apply to employes of the 
Fire Department, Bay View Asylum, or the City Jail. 
An effort to reduce this working day to eight hours by 
legislative enactment failed in 1906. 

(b) The legislature in 1894 passed a sweat shop law, 
which provided that factories, or work shops should be 
kept clean and not overcrowded. Clothing manufacturers 
are required to provide against the transmission of dis- 



357] The Economic Seminary, 1907-1908 49 

ease, and any officer of a corporation or any individual 
who permits garments to be made in a place or under 
conditions involving danger to the public health with his 
knowledge, shall be imprisoned from sixty days to a year 
and fined not exceeding one thousand dollars. The law 
requires that each room used for manufacturing purposes 
shall contain four hundred cubic feet of air space to each 
operative, and shall be kept at a temperature below 
eighty degrees Fahrenheit, no person with an infectious 
or contagious disease shall be permitted to work therein, 
and debris and dirt must be removed at least once in 
every twenty-four hours. The room must be well venti- 
lated and lighted, and no tenement room may be used 
by more than the immediate family for the manufacture 
of coats, vests, trousers, knee-pants, overalls, cloaks, hats, 
caps, suspenders, jerseys, gloves, waists, waistbands, 
underwear, neckwear, furs, fur trimmings, fur garments, 
shirts, purses, feathers, artificial flowers, cigarettes, or 
cigars. The same law provides for two deputies to the 
Chief of the Bureau of Statistics and Information who 
shall be factory inspectors. A permit is required before 
any building or part of a building may be used for the 
manufacture of the above enumerated articles. The em- 
ployer or contractor is required to keep a list of names 
and addresses of all persons taking work to their homes, 
and the inspectors have entrance to any room where goods 
are manufactured. 

(c) The state has enacted comparatively few laws 
intended to secure the safety and health of laborers while 
at work. 

All steam boilers must be inspected by state inspectors, 
and the condition under which each boiler may be used 
are prescribed. 

In 1898 the legislature passed a mine inspection law ? 
which was amended in 1900. It applies to mines in 
Allegany and Garrett counties, and provides for one 
mine inspector for these two counties, and prescribes his 



50 Johns Hopkins University Circular [358 

duties, setting forth minutely the conditions under which 
mines may be operated in safety. The legislature of 1904 
amended this act by incorporating a penalty for its viola- 
tion. 

Stone miners in Carroll county are also protected by an 
act which provides that any mill for grinding flint or any 
other kind of stone by the cylinder or dry process shall 
be equipped with the most improved fans, ventilators and 
other appliances for removing dust, and subjects the 
offender to a fine of not less than five hundred dollars for 
each offence. 

All scaffolding on buildings is to be inspected by the 
police of any city or town in the state upon complaint. 
If they find the scaffolding unsafe, the police are required 
to post a notice thereon to that effect and to notify the 
owner of the building, who is required to have the struc- 
tures made safe. 

(d) Maryland has not gone far in establishing legal 
tests of efficiency for workingmen. It does require that 
all plumbers must be examined and have a permit from 
the Board of Commissioners of Practical Plumbers. The 
board is appointed biennially and consists of three skilled 
plumbers from the city of Baltimore, the Commissioner of 
Health of Baltimore City and a member of the State 
Board of Health. This board was first created in 1886, 
and is empowered to make such rules and regulations 
from time to time as it may deem necessary and requisite. 

Horseshoers in the city of Baltimore or in the Twelfth 
District of Baltimore county must be licensed by the 
Board of Examiners of Horseshoers, which consists of 
five members, one of whom must be a veterinarian, two 
master horseshoers and two journeymen horseshoers, all 
doing business in Baltimore city. 

In 1904 the legislature provided for the establishment 
of the Board of Barber Examiners for Maryland, to con- 
sist of two journeymen and one master barber, whose 



359] The Economic Seminary, 1907-1908 51 

duty it should be to examine and license applicants for 
certificates as barbers. 

(e) In 1894 a child labor law was passed forbidding the 
employment of children under twelve in any mill or fac- 
tory in the state, other than canneries, and exempting 
sixteen counties. 

This law was amended in 1902 so as to forbid the 
employment of children under fourteen years of age in 
any manufacturing plant, except canneries, unless a child 
was the only support of a widowed mother, invalid father, 
or was solely dependent upon such employment for self- 
support. By senatorial courtesy nineteen of the twenty- 
three counties secured exemption from this law, leaving it 
in force only in Baltimore city, Allegany county, Anne 
Arundel county, Charles county and Dorchester county. 
No adequate provision for its enforcement was made, so 
that it remained practically a dead letter until 1906, when 
it was repealed and re-enacted with amendments, and its 
enforcement placed in the hands of the Bureau of Sta- 
tistics and Information, which bureau was given six addi- 
tional inspectors for this purpose. The law now prohibits 
the employment of children under twelve years of age in 
any gainful occupation except farm labor, but exempts all 
of the counties during the summer months. All children 
between twelve and sixteen years of age must hold a per- 
mit from the Bureau of Statistics and Information before 
they can go to work, and employers are required to post 
lists of all children of such age where they may be easily 
accessible to the inspectors. The bureau is required to 
secure proof of the child's age before granting a permit, 
and if documentary proof does not exist, then the bureau 
must require the health official having jurisdiction in the 
locality where the child lives to make affidavit that such 
record does not exist. The law also requires that the 
bureau shall ascertain that the child has a proper mental 
and physical development for the age claimed. 



52 Johns Hopkins University Circular [360 

(f) A State Bureau of Statistics and Information has 
been in existence some twenty years. The bureau has 
been charged with the enforcement of the more important 
recent laws affecting labor, notably the sweat shop law 
and the child labor law. In cases of labor disputes, 
in which ten or more employees are concerned, the bureau 
is authorized to provide a court of arbitration and to pub- 
lish its findings. In 1902 the bureau was given charge of 
the establishment and maintenance of a free state em- 
ployment agency. 



The following are some of the recent publications in economics 
of The Johns Hopkins Press : 

A Trial Bibliography of American Trade-Union Publica- 
tions. Edited by George E. Barnett. 50 cents. 

The Finances of American Trade Unions. By A. M. Sakolski. 
75 cents. 

National Labor Federations in the United States. By 
William Kirk. 75 cents. 

Financial History of Maryland, 1789-1848. By Hugh S. Hanna. 
75 cents. 

Apprenticeship in American Trade Unions. By J. M. Motley. 
50 cents. 

Financial History of Baltimore. By J. H. Hollander. $2.00. 

The American Workman. By E. Levasseur (translation). $3.00. 

The Finances and Administration of Providence, 1636-1901. 
By Howard K. Stokes. $3.50. 



361] Henry Newell Martin 53 



HENRY NEWELL MARTIN 

Tribute by Professor William H. Howell on the occasion of the presenta- 
tion to the Johns Hopkins University of a portrait of the late Professor 
H. Newell Martin, February 22, 1908. 

Henry Newell Martin was born July 1, 1848, at Newry, 
County Down, Ireland. Both of his parents were Irish, 
his father being at the time of his birth a Congregational 
minister. He was educated at University College, Lon- 
don, and at Cambridge University. In both institutions 
he made a brilliant record as a student, winning many 
honors. At Cambridge, for instance, he took first place in 
the Natural Science Tripos of 1873, second place being 
won by Francis M. Balfour, who subsequently gained such 
distinction as an embryologist. He assisted in various 
courses in physiology and biology and was made a Fellow 
of Trinity College, Cambridge, in 1874.* When Mr. Gil- 
man was in England seeking advice in regard to a suitable 
occupant for the chair of biology in this institution, his 
attention was directed to Martin as a man of exceptional 
promise. Mr. Gilman, in his valuable and delightful 
reminiscences, has put on record the details regarding the 
selection of Dr. Martin for the important post of Profes- 
sor of Biology. They need not be repeated here. It is 
sufficient to say that in this case, as in his other appoint- 
ments, our first president showed an extraordinary ability 
in selecting the right man. Dr. Martin served the Uni- 
versity as head of the department of Biology for seventeen 
years, but in 1893 his failing health and physical inability 
to meet the many new duties thrown upon his department 
by the opening of the Medical School, led to his resigna- 
tion. He returned to England, hoping that with care he 
might recover his health and again engage in productive 
work. Indeed, he had begun investigations in Professor 



*See obituary notice by Sir Michael Foster — Proceedings of the Royal 
Society, Vol. 60. 



54 Johns Hopkins University Circular [362 

Schafer's laboratory at University College, and was busy 
with plans for a new book on Histology, but he counted 
beyond his strength. After repeated illnesses he died 
October 27, 1896, at Burley in Wharfedale, Yorkshire, as 
the result of a sudden hemorrhage. 

The Trustees of the University have commemorated his 
great services by the erection of a memorial tablet in the 
biological laboratory, and his friends and pupils have 
shown their esteem and appreciation by the publication of 
his collected works. The latter testimonial was com- 
pleted before his death, and it is a pleasure to know that 
this act was a source of great gratification to him and that 
it has aided materially in bringing his work to the atten- 
tion of his foreign colleagues. While his name will ever 
be held in grateful remembrance in connection with the 
history of this institution, and with the development of 
biological instruction and research in this country, it 
seemed to some of his former friends and pupils that there 
should be upon the walls of the University a permanent 
portrait, in order that those who come after us may be 
able to realize something of the singular charm of his per- 
sonality. Indeed, when we remember that Martin was 
one of the original Hopkins seven to whose splendid work 
the fame and prosperity of the University have been chiefly 
due, it would seem to be almost an imperative duty to 
include his portrait with those of the others constituting 
this illustrious group of scholars. 

The artist selected to paint the portrait, Miss Gabrielle 
de Vaux Clements, has had a difficult task. She did not 
know Professor Martin, and was obliged, therefore, to 
rely upon a rather meagre collection of photographs and 
the verbal descriptions of acquaintances. We are much 
indebted to her for the great interest she has shown in the 
work, and I believe that she has succeeded in giving us a 
portrait which will recall vividly and truthfully to the 
minds of his old pupils the bright, attractive, alert per- 



363] Henry Newell Martin 55 

sonality of their professor and fellow-student, as he was 
in his best days. 

The important service that Dr. Martin rendered to 
biological instruction in this country has been freely rec- 
ognized. He was a pupil of Huxley and of Michael Fos- 
ter, and, by his example and precept, he was able to estab- 
lish here the broad-minded conception of the unity of the 
biological sciences, which he derived from one of these 
masters, and the methods of scientific investigation in 
physiology, which had been inaugurated in England by 
the other. During his period of training there had been, 
in fact, a renaissance of biological interests in England, 
the initial cause of which is to be found, no doubt, in the 
intense feeling aroused by the publication and quick 
acceptance of the Darwinian conception of the genetic re- 
lationships of living things. On the physiological side 
these interests had been widened and vitalized into pro- 
ductive activity by the introduction of the experimental 
method as developed especially in the German-speaking 
countries. The new points of view were known to the 
leaders in botany, zoology, and physiology in this country, 
but their environment was not favorable to a change from 
the older to the newer methods of working and thinking. 
The timely establishment of this University as an institu- 
tion devoted chiefly to advanced instruction and research 
gave Martin an opportunity, which he utilized fully, to 
introduce the newer conceptions and methods into our 
biological instruction. His laboratory became the centre 
of the biological interests in this country. Most of the 
men who in the next decade or two attained to prominence 
as teachers or investigators in the subject, were his stu- 
dents. They helped to spread his influence in an ever- 
widening circle, and numerous laboratories founded on 
the model developed here by Martin sprang into existence 
and are in full activity at the present time. 



56 Johns Hopkins University Circular [364 

As a teacher of beginners Martin was delightful. He 
had an enthusiasm, an engaging frankness and simplicity 
of manner, which attracted his men at once. I think that 
he thoroughly enjoyed introducing young students to the 
beauties and marvels of living structures and their 
adaptations. To some of us, I know, the story as he un- 
folded it came like a revelation which startled us into a 
new intellectual life. As a teacher of advanced students 
his method was entirely different. While approachable at 
all times, he seemed to hold to the sink-or-swim theory. 
Certainly he could show an extraordinary amount of 
apparent indifference toward some poor fellow flounder- 
ing in the difficulties of his first research. If the man 
showed pluck and independence, he was finally appre- 
ciated and encouraged in every possible way, but those 
misguided students who imagined that the professor 
would do their thinking for them, were sadly disap- 
pointed. Martin was capable of letting them drift in an 
altogether heartless manner. In my student days this 
method of teaching often puzzled me, but I am convinced 
now that he acted on a fixed principle, that is, he delib- 
erately tried to discourage those whom he thought unfit 
for the work of investigation. But in all his personal con- 
tact with his pupils Martin exhibited a sincerity, a broad- 
mindedness, and a modesty such as aroused both a love 
for the subject and an affection for the teacher. His reti- 
cence in regard to liis own work was remarkable. While 
keen to appreciate and publicly praise the good work of 
others, he rarely, if ever, made any reference before his 
students to his own investigations. It was a matter of 
comment among us that in the library of the laboratory it 
was impossible to find any of his own publications, 
although those of the other workers in the laboratory, or 
of outside men, were displayed conspicuously upon the 
reading table. We were impatient at times to have him 
discuss before us those questions upon which he was work- 
ing himself, but, so far as I can remember, he never did. 



365] Henry Newell Martin 57 

In his advanced lectures he wandered far afield in various 
parts of biology, with the result that, however restricted 
our individual work might be, we were never allowed to 
get away from the broad outlook upon the subject as a 
whole. We heard of Pfeffer's researches upon osmotic 
pressure and had them demonstrated to us, in part, before 
physical chemistry was thought of as a separate science. 
In the laboratory and at his home, by means of journal 
clubs, seminaries, reading clubs, field clubs, etc., he at- 
tempted to inculcate that sympathy for all sides of bio- 
logical study which was such a striking characteristic of 
his own nature. 

Martin's scientific researches were in the field of animal 
physiology. As an investigator he possessed unusual 
originality and insight. It did not accord with his tem- 
perament to make elaborate contributions to the current 
discussions of the day. He selected rather specific prob- 
lems which might be solved conclusively by some new and 
original method, and it must be admitted that he possessed 
to a high degree the characteristics of clear-sightedness 
and directness of approach which are so often seen in 
English-trained men of science. His best work was un- 
doubtedly his brilliant series of experiments upon the 
physiology of the heart; experiments which were made 
possible by his discovery of an entirely new method of 
studying the isolated heart. This work won the recogni- 
tion of a Croonian Lectureship from the Royal Society 
of London, but, for the most part, it was not entirely 
appreciated either at home or abroad during his life-time. 
It would seem that new work, like a new book, must some- 
times be forced upon the attention of the public, if it is to 
win immediate notice, and Martin was a man of a nature 
too sensitive and genuinely modest to bring himself to 
push his work, even by methods altogether proper. He 
published most of his researches in the "Studies from the 
Biological Laboratory," which had a limited circulation, 
and years afterward a distinguished German professor 



58 Johns Hopkins University Circular [366 

of physiology was disturbed to find that a long series of 
experiments published by him had been previously de- 
scribed by Martin, both as regards results and method. 
In recent years the principle of Martin's method for inves- 
tigating the functions of the heart has been widely used 
in experimental medicine, and it forms at present an 
accepted and almost indispensable means of research in 
cardiac physiology, pharmacology, and pathology. Mar- 
tin himself saw clearly the value of his discovery and 
hoped that it would be designated in physiological litera- 
ture as "the Baltimore method," but it has been used now 
so frequently and modified so often in details that it is to 
be feared that the originator of the idea will not be re- 
membered in connection with it. It happens not infre- 
quently in science that those who furnish the real 
thoughts are lost to view under the great amount of work 
which they call into existence, while, on the contrary, a 
name may long be kept alive by being linked with some 
comparatively unimportant fact or observation. Dame 
Fortune is capricious in this as in other respects. But if 
Martin's great contribution was not fully appreciated at 
once by the outside world, there was, I hope, some com- 
pensation for him in the fact that the little world within 
the old biological laboratory was immensely enthusiastic. 
Such energy, such loyalty, such confidence it has not 
been my good fortune to witness again. May this por- 
trait, which a few of his friends take such pleasure in 
presenting to-day, serve to keep alive within the Univer- 
sity itself the memory of his good work and of his many 
virtues. 



THE ALBERT SHAW LECTURES ON DIPLOMATIC HISTORY 



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Among the topics discussed are: Cuba and National Policy; 
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uZed 
n |J 

THE 

JOHNS HOPKINS 
UNIVERSITY CIRCULAR 



THE 

ECONOMIC SEMINARY 
1 908-09 



Baltimore, Maryland 
Published by the University 
Issued Monthly from October to July 
April, 1909 



[New Series, 1909, No. 4] 
[Whole Number 215] 



Entered, October 21, 1903, at Baltimore, Md., as second class matter, under 
Act of Congress of July 16, 1894. 



JOHNS HOPKINS UNIVERSITY CIRCULAR, No. 215 



APRIL.. 1909 
CONTENTS 

PAGE 

The Economic Seminary, 1908-09 1 

David Ricardo and the Bank of England. By Jacob H. 

Hollander, 3 

The Piece System of Remuneration in the Printing Trade. By 

George E. Barnett, 5 

Secondary Freight Services. By Logan G. McPherson, . . 11 
The Sheet Mill Scale of the Amalgamated Association of Iron, 

Steel and Tin Workers. By D. A. McCabe, .... 16 
The Form of the Trade-Union Label. By E. R. Spedden, . 22 
The Closed Shop in the American Federation of Musicians. 

By F. T. Stockton, 26 

Early Status of Labor in Maryland. By H. Wirt Steele, . 30 
The Shorter-Day Movement of the Carpenters in 1893-94. 

By E. T. Cheetham, 36 

Convict Labor in the Maryland Penitentiary. By. A. 0. 

Mullen, 40 

Policy of the Glass Bottle Blowers' Union Toward Machinery. 

By A. B. Morton, 44 

The Non-Union Man in the Sheet Metal Trade. By F. E. 

Wolfe, 48 



THE 

JOHNS HOPKINS 
UNIVERSITY CIRCULAR 

New Series, 1909, No. 4 APRIL, 1909 Whole Number, 215 

THE ECONOMIC SEMINARY, 1908-1909 

Edited by Professor J. H. Hollander and Associate 
Professor G. E. Barnett 



During the current academic year, the Economic Semi- 
nary has continued its investigation of American trade 
unionism. In the summer of 1908 each member of the 
Seminary carried on field work in connection with the 
particular phase of the subject in which he was interested. 
The summer work was fruitful also in adding materially 
to the large collection of trade-union publications in the 
possession of the University. Material progress has been 
made in prosecuting the inquiries already begun, and 
certain new lines of investigation have been undertaken. 
The chief of these are : The closed shop, trade unionism 
and convict labor, labor legislation in Maryland, trade 
unionism and machinery, and trade-union membership. 

Two monographic studies by members of the Seminary, 
embodying the results of Seminary activity, are now 
ready for publication and will be issued as follows : "The 
Printers: A Study in American Trade Unionism," by 
Dr. George E. Barnett, in the Publications of the Amer- 
ican, Economic Association, and "The Government of 
American Trade Unions," by Dr. T. W. Glocker. 

1 



2 Economic Seminary [312 

A record of the proceedings of the Seminary, and 
abstracts of certain papers there presented, are appended : 

Oct. 8 — Report of the summer's field work, by Professor Hol- 
lander, Associate Professor Barnett, Messrs. E. R. Spedden, F. T. 
Stockton, A. O. Mullen, H. W. Steele and D. A. McCabe. 

Oct. 14 and 21 — "The Standard Rate in the Typographical 
Union," by Associate Professor Barnett. 

Oct. 29— "The Trade Union Label in Theory," by E. R. Spedden. 

Nov. 4 — "The Massie Catalogue," by Professor C. M. Andrews. 

Nov. 12 and 18 — "The Minimum Time Rate," by D. A. McCabe. 

Dec. 1 — "The Closed Shop in the American Federation of 
Musicians," by F. T. Stockton. 

Dec. 9 — '"Machinery in Glass Bottle Blowing," by A. B. Morton. 

Dec. 19 — "The Non-Union Man in the Sheet Metal Trade," by 
F. E. Wolfe. 

Jan. 9 — (a) "The Theory of Collective Bargaining," by Asso- 
ciate Professor Barnett; (&) "Diehl's Ricardo," by Professor 
Hollander. 

Jan. 14 — "Convict Labor," by A. O. Mullen. 

Jan. 20 — (a) "The Decision of the English Court of Appeals 
in Osborn vs. Amalgamated Railway Servants," by Associate 
Professor Barnett; (&) "Ricardo's Proposals for an Economic 
and Secure Currency," by Professor Hollander. 

Jan. 27 — "An Investigation Into the Cost of Living of Wage 
Earning Classes in American Cities," by Ernest Aves, of the 
British Board of Trade. 

Feb. 4 — "The Administration of the Label," by E. R. Spedden. 

Feb. 10 — "Convict Labor and American Trade Unionism," by 
A. O. Mullen. 

Feb. 18 — "Apprenticeship in the Typographical Union," by As- 
sociate Professor Barnett. 

Feb. 24 — "The Decision of the Supreme Court of Mass. in 
L. D. Wilcutt and Sons Company vs. Bricklayers' Union No. 3," 
by F. T. Stockton. 

Mar. 31 — (a) "David Ricardo and the Bank of England," by 
Professor Hollander; (b) "The Standard Piece Rate, by D. A. 
McCabe. 

Mar. 10 — "Spanish Trade Unionism," contributed by W. H. 
Buckler. 

Mar. 18— (a) "The Legal Aspects of the Trade-Union Label," 
by E. R. Spedden; (ft) "The Shorter Day in the Carpenter's 
Union," by E. T. Cheetham. 

Mar. 24 — "The report of the Royal Commission on the Poor 
Laws," by D. A. McCabe. 

April 1 — "The Carpenters' Union," by Mr. Frank Duffy, General 
Secretary-Treasurer of the United Brotherhood of Carpenters and 
Joiners of America. 



313] J. H. Hollander 3 

April 22 — "The Development of Monetary Theory from Adam 
Smith to Ricardo," by Professor Hollander. 

April 28 — "The Closed Shop in American Trade Unionism," hy 
F. T. Stockton. 

May 6 — "Membership in the Cigarmakers' Union," by F. E. 
Wolfe. 

May 12 — "The Flint Glass Workers' Union and the Introduction 
of Machinery," by A. B. Morton. 



DAVID RICARDO AND THE BANK OF ENGLAND 
By Jacob H. Hollander 

There is no more characteristic phase of Ricardo's 
relation to contemporary institutions than his persistent, 
avowed hostility to the policy and practice of the Bank 
of England. 

In his first published utterance — the communication to 
The Morning Chronicle of August 29, 1809 — Ricardo con- 
demned "the dangerous power" with which; the Bank was 
entrusted, and with the further progress of the bullion 
controversy this attitude became more defined. The dis- 
cussions, in and out of the House of Commons, in 1815-16, 
incident to the renewal of the government's engagement 
with the Bank as fiscal agent, found Ricardo sharply 
aligned against the policy of the Bank directors and an 
aggressive champion of more liberal practices. "I always 
enjoy any attack upon the Bank, and [if I] had sufficient 
courage I would be a party to it," he wrote to Malthus in 
this connection. Finally, the last substantial piece of 
work from Ricardo's pen, not actually published, indeed, 
until after his death, was the "Plan for the establish- 
ment of a National Bank," in which the withdrawal of 
note-issuing power from the Bank was strongly urged. 
In the intervening years, thick with notable episodes in 



4 Economic Seminary [314 

the Bank's history, Ricardo lost no occasion in public 
expressions and in private intercourse to voice emphatic 
dissent from the Bank's procedure. 

It is possible to explain this consistent hostility as 
a mere unreasoned dislike. But all that we know of 
Ricardo's mental habit makes it clear that his temper 
was judicial and his conclusions deliberate. Slow to form 
opinions, receptive to new evidence, — when his judgments 
were once formed they gave evidence of definite basis and 
hard logic. It was in the wisdom of painful experience 
that James Mill wrote to Francis Place : "Don't meddle 
with Ricardo. It is not easy to find him in the wrong, I 
can assure you. I have often thought that I had found 
him in the wrong, but I have always eventually come over 
to his opinion." 

A no less simple, although very much cheaper explana- 
tion is to assume that Ricardo's opposition to the Bank 
was dictated by personal interest; — for example, that as 
a considerable operator on the Stock Exchange he might, 
prior to 1815, have come in frequent contact, perhaps 
in occasional collision with the Bank directorate. Or 
again, that, as a large holder of funds he must have 
suffered from the depreciation of the money standard con- 
sequent upon the Bank's note-issuing policy. A certain 
reinforcement has lately been given, perhaps unintention- 
ally, to this Held-like interpretation, by the general tenor 
of Professor Fox well's notable preface to the English 
translation of Andreades' "History of the Bank of Eng- 
land." 

As a matter of fact, Ricardo's attitude towards the 
Bank of England was inspired by a composite impulse. 
Doctrinal, personal, political, even philosophical con- 
siderations contributed — each with a distinct and trace- 
able definiteness. As an observer of monetary practice 
and an advocate of specific monetary doctrines, he 
resented the stolid resistance of the Bank directorate to 



315] • G. E. Barnett 5 

accepted principles. As a substantial proprietor of Bank 
stock, he protested against the niggardly distribution of 
the Bank's profits and the unwarranted concealment of 
its accounts. As a citizen, in close touch with public 
affairs, and later as a legislator, he was indignant at the 
disadvantageous arrangements subsisting between the 
Bank and the government. As a philosophical radical he 
was in arms against a depreciation of the accustomed 
monetary standard, with its consequent unmerited effects, 
for good and ill, upon distinct social classes. 



THE PIECE SYSTEM OF REMUNERATION IN THE 
PRINTING TRADE 

By George E. Barnett 

Until about 1890 the great mass of compositors 
employed in printing offices were paid by the piece. The 
basic principle in the system of remuneration in vogue 
was that the employee should be paid according to the 
number of pieces of type which he picked up, and this 
was estimated by calculating the surface covered by the 
type when set. The unit in which this area was measured 
was known as an em and composition was thus paid for 
at a certain rate per thousand ems. 

A somewhat technical description of type is necessary 
to an understanding of the system of measurement by 
ems. A piece of type consists of a body and a face. The 
body is a right-angled, prism-shaped piece of metal on 
the end of which the face is mounted in relief. It is from 
the face that the printed impression is made. The end 
of the body is larger than the face and the blank spaces 
between the printed lines and letters are thus produced. 



6 Economic Seminary [316 

The bodies of the pieces of type fill up entirely a page of 
composition. 

The dimension of the body of a piece of type across the 
page is known as its width and the dimension up and 
down the page, as its depth. In any font of type the 
depth of all the pieces is the same, but the widths of the 
bodies vary considerably. That of the letter m is the 
greatest and its width approximates its depth. The letter 
1 is much less in width. 

An em in any font is the square surface each side of 
which is equal to the depth of the pieces. The size of the 
em varies according to the size of the type. A pica em is 
larger than a brevier em. Such variations in absolute 
size obviously do not affect the em as a unit for measuring 
work as long as the size of the pieces of type varies pro- 
portionately with the size of the em. 

The theory that the em measures correctly the number 
of pieces of type set rests on two assumptions. It is taken 
for granted that if a compositor sets a considerable 
amount of matter the thin and thick bodies will average 
up, since about the same proportion of the letters of the 
alphabet will occur. It is also assumed that the com- 
bined width of all the letters in the alphabet bears a fixed 
relation to the depth. The first assumption is entirely 
justified, but the second is not and the defect in the em as 
a unit of measurement lies in the fact that different fonts 
of type vary widely in the ratio of the widths of the bodies 
taken together to their depths. A concrete case may 
make the point clearer. If a piece of composition con- 
tains thirty lines and its width is equal to one-third of its 
length, it measures 300 ems, but the number of pieces of 
type the compositor has to set may be larger or smaller 
according to the width of the pieces. In one font there 
may be on the average sixty pieces to the line, while in 
another of exactly the same depth there may be fifty 
pieces. A compositor setting type of the one font does 



317] G. E. Burnett 7 

one-fifth more work in setting the same number of ems. 
Obviously, certain limits are placed on the extent to 
which the pieces can be "thinned" or "fattened" by con- 
siderations of legibility and appearance, but these limits 
are wide enough to permit considerable variations. 

The system of measurement by ems, in the form in 
which it was first used in this country, took no account of 
the possibilities of such variations. The early societies 
of printers did not discuss the subject or make any pro- 
visions concerning it in their scales, probably because 
the fonts cast then were more nearly uniform in the ratio 
of width to depth. 

The subject does not appear to have attracted attention 
from the printers until 1837, when the Columbia Society 
of Washington appointed a committee to investigate the 
"range of type in the several offices." It was found that 
the widths of all the lower case letters of the alphabet 
taken together measured in different fonts from 11% to 
13 times the depth of the type, or as the committee put it, 
ll 1 /^ to 13 ems. A compositor working from the "leanest" 
font had therefore to set about fifteen per cent, more 
pieces of type than from the "fattest" in order to have as 
many ems. The society adopted a rule that all type 
should "measure 12% ems to the alphabet," or, in other 
words, that the combined width of the bodies of all the 
lower case letters should equal twelve and one-half times 
the depth of the body. If the font measured less than 
this the compositor was to be paid at a higher rate. It 
was soon recognized that the smaller sizes of type ran 
ordinarily more ems to the alphabet than the larger and 
the "alphabetical standard" was graded in such a way as 
to take this into account. 

Practically all the local unions adopted this method of 
dealing with the problem, and from about 1840 the scales 
ordinarily included "alphabetical standards," but these 
varied widely from union to union. The National Union 



8 Economic Seminary [318 

on several occasions, in the hope of securing uniformity 
recommended the following standard: agate, 15 ems to 
the alphabet; nonpareil, 14; minion and brevier, 13; 
bourgeois to pica inclusive, 12. The difficulty in the 
adoption of any common standard lay in the fact that the 
different sizes of type were not standardized. Different 
fonts of so-called brevier were not always the same in 
depth. Each local union therefore preferred to adopt an 
"alphabetical standard" suited to local conditions. The 
local unions differed also in their methods of charging for 
type falling below the standard. Some local unions 
simply charged a rate proportionate to the amount of 
deviation from the standard, while others penalized the 
use of "lean" type. The latter course frequently involved 
friction, since an employer was usually unwilling to pay 
a price for lean type which yielded the compositor more 
than if it were of standard width. In 1882 the Inter- 
national, after a discussion protracted over some years, 
required the local unions to adopt the alphabetical 
standard which had been previously recommended. They 
were also to charge type falling below the standard pro- 
portionately to its deviation. 

The adoption of these rules did not, however, make the 
em an exact measure of the work of the compositor, since 
only type falling below a certain width was standardized 
by the system. No reduction in price was made if the 
type ran more ems to the alphabet than required. It was 
expressly laid down in the union's rule that "all fonts 
exceeding the standard size are to the benefit of the com- 
positor and no reduction or allowance can be made owing 
to such excess." The result was that those employers 
who wished to use broad-faced type paid a higher rate 
per piece of type set than others. The difference in the 
cost of setting a given number of letters in type of 
standard width and in a broader-faced type was some- 
times considerable. In 1879 Mr. Samuel Rastall, of 



319] G. E. Barnett 9 

Chicago, in a comparison between five offices in that city, 
showed that with the same labor with which a compositor 
setting minion type of standard width could earn $18.63, 
he could earn $21.62 in another office where the font was 
"fatter." 

It was claimed also that the "alphabetical standard" 
was evaded. As early as 1871 it was charged by some 
journeymen that the letters most frequently occurring — 
a, c, d, e, h, i, n, o ? r, s, t, u and w — were cast thin and 
the seldom used letters such as x and z were cast thick. 
An alphabet so cast would measure the required ratio 
of width to depth, but the compositor would be no better 
off than if the type were below the standard in measure. 
While the debasement of the standard in this way was 
not practicable to any great extent, since within any font 
the widths of the letters must bear a certain relation to 
each other or the matter will have a distorted appearance, 
it appears that it was occasionally resorted to. A com- 
mittee of the International reported in 1893 that in a con- 
ference with representative type-founders it had been 
admitted "that in the past where a font of type fell below 
the standard in certain cases it had been brought up to 
the standard at the demand of the publisher ordering the 
font by enlarging the letters least used, the x, p, etc." 
To prevent such evasions, in 1890 the International 
required that the letters a, c, d, e, i, s, m, n, 1, o, r, t and u 
should equal in width at least one-half of the width of the 
whole alphabet. 

The defects in the em system of measurement led to pro- 
posals for the adoption of a new unit of measurement. 
The most widely discussed of these plans was that first 
advocated in 1879 by Mr. Samuel Kastall, secretary of 
the Chicago union. The compositor was to take twenty- 
five letters, leaving out the z for convenience in computa- 
tion. He was to take six spaces, the estimated number 
used in forming twenty-five letters into words. The 



10 Economic Seminary [320 

length of these twenty-five letters and six spaces was to 
be the unit of measurement. Multiplied by forty it gave 
a measure containing one thousand letters. This system 
was adopted by the International in 1881, but with, the 
important proviso that it should be "enforced only in 
those localities where practicable." None of the local 
unions appear to have put it into effect. A similar plan 
was advocated in 1886 by Mr. MacKeller of the Type 
Founders' Association. He proposed that the width of 
the body of the letter m should be taken as a measure of 
the line. This system was essentially the same as that of 
Mr. Rastall, except that it involved the theory that the 
proportion in the width of all the other letters to that of 
the m was fixed. 

A final effort to secure a better unit of measurement 
was made in 1892. The National Publishers' Association 
held a preliminary conference on the subject in March of 
that year with the representatives of the Type Founders' 
Association and of the union. This conference favored 
the adoption of the MacKeller system. In order to pro- 
tect the compositor against any alteration in the ratio 
of the width of the other letters to that of the letter m, 
representatives of the union secured the insertion of 
provisions requiring that the alphabet of any font should 
measure at least fifteen of its own m's and that the thir- 
teen letters less used should equal in measurement the 
thirteen letters more used (c, d, e, i, s, m, n, 1, o, u, t, a, 
etc.). The International Union submitted to the refer- 
endum a proposition authorizing the executive council to 
select one or more cities for a trial of the system, and the 
proposal was carried. By this time, however, the machine 
was being rapidly introduced, and the union was less con- 
cerned in the matter than it had been. 

The chief reason why the unions never insisted on the 
replacement of the defective em system by the far pre- 
ferable system of measurement by letter, was that in any 



321] L. G. McPherson 11 

adjustment of the piece rate to a more exact system of 
measurement it was inevitable that the earnings of the 
men in the "fat" offices would be scaled down. The piece 
rate for the printers was not a level rate for each city, 
but a different rate for almost every office. The result 
was a division of interest between the journeymen in 
different offices. There were always keen-sighted men 
who thought that the adoption of a better system of type 
measurement would have unified the interests of all 
journeymen printers and strengthened the union, but the 
adoption of any such policy meant a temporary lowering 
of wages for a part of the compositors, without any com- 
pensating advantage for the others. As a result, such 
proposals always failed. 



SECONDARY FREIGHT SERVICES 
By Logan G. McPherson 

Switching. — To switch is to move a car from one track 
to another. Its simplest phases are the shifting by switch 
engines of cars from, the various tracks of a yard into 
definite arrangement on a train track, whence they are 
taken out to a main line track for road movement; the 
reverse switching of the cars of an incoming train to the 
various tracks of a yard, whence they are taken to the 
freight houses or other destinations, or made up into 
trains by shifting engines for further main-line move- 
ment ; and the switching of a car or cars from a track to 
a side-track at a way destination. 

When a business enterprise attains such magnitude 
that it is desirable that a track be built connecting its 
mill or mine, factory or warehouse with the railroad, 
another element is introduced. It is necessary that cars, 



12 Economic Seminary [322 

to be loaded at and shipped from, and to be received by 
and unloaded at the business establishment, be conveyed 
between the railroad track and that establishment by a 
transportation service distinct from the main-line haul; 
this is included under the somewhat wide-embracing term 
of switching. 

At most junctions where freight cars are transferred 
from the tracks of one to those of another railroad com- 
pany, the transfer is effected over a connecting track, 
which may belong to one or to the other or to both com- 
panies, the shifting being performed by the locomotive of 
one or the other company. 

At other places, especially in the larger industrial and 
commercial centers, where the tracks of many railroads 
converge from and radiate in all directions, it has been 
out of the question for any one company to have tracks 
connecting with those of all other companies. The most 
frequent solution of this problem is the construction, 
usually by a separate company, of a "belt" line, or a 
"connecting" railway extending generally a part of the 
way, or, perhaps, all the way around the city and linked 
by connecting tracks with the various railroads to and 
from each of which it is thus enabled to transfer cars. 

The growth of certain of the larger cities has sometimes 
caused what was originally a belt road in the suburbs to 
become a line encircling what is comparatively a central 
portion of the manufacturing district. Industries have 
been located upon such a belt line between which there 
arises the need for transportation which its locomotives 
perform. This is not a switching but a complete trans- 
portation service. 

Analagous, in a way, to the switching service is that 
transportation by water necessary when a railroad's track 
ends on the shore of a river, an estuary, or other water- 
way, on the opposite bank of which is the city that is the 
real commercial terminus. The two conspicuous examples 



323] L. G. McPherson 13 

are San Francisco, which is located on a peninsula pro- 
jecting into San Francisco Bay, across which freight is 
conveyed from Oakland; and Manhattan Island, extend- 
ing southward between the East and North, Rivers. Vast 
numbers of loaded cars are floated on barges that are 
fitted with tracks across these rivers and to and fro in 
New York harbor between one railroad freight station 
and another. Into barges, known as lighters, freight is 
unloaded from cars at stations and "lightered" within the 
lighterage limits of New York harbor to other stations, 
to the water front of manufacturing establishments, to 
the side of any vessel for whose cargo it may be destined. 

Private Industrial Tracks. — The operation of a busi- 
ness, especially of a mill or factory utilizing material that 
is large in bulk and heavy in weight, may so develop that 
it will need to build railroad tracks to carry material 
and products between its different plants. For example, 
a steel mill may so enlarge that furnaces, converters, rail 
mills, and structural mills may all be embraced in one 
vast enclosure wherein the transportation to and fro 
between the different buildings of ore, coal, coke, and 
limestone for the furnaces, ingots, blooms, billets, rails, 
bars, and other forms by any other conveyance than a 
steam railroad would be out of the question. Many of such 
establishments include several miles of track and numer- 
ous cars and locomotives as part of their plant within 
the area occupied by various buildings. Such a plant is a 
large patron of the railroads, receiving every day many 
carloads of ore, fuel, and flux, and forwarding daily many 
carloads of finished material over its tracks which connect 
with the main lines of the adjacent railroad companies. 

The service of the railroad companies designated as 
switching varies at different establishments of this and 
similar character, because of peculiar local conditions. 
At one mill, for example, a railroad delivers cars to 
and takes cars from that point on the connecting tracks 



14 Economic Seminary [324 

which is located on the boundary line between the right 
of way of the railroad and the land of the mill site. At 
another mill the railroad company switches the loaded 
cars to and takes loaded cars from tracks well within the 
interior of the mill. At still another, the railroad com- 
pany switches cars of ore, fuel, and limestone to the 
places in the interior of the mill yard most convenient for 
their unloading, and takes cars of the finished product 
from those places in the mill yards where they have been 
loaded. That is, it "spots" cars for unloading and re- 
moves them when empty, "spots" empty cars for load- 
ing and takes such cars, when loaded, from where they 
have been "spotted." At places this entire service is 
performed without other transportation charge than that 
made for the road haul under the ordinary tariffs. 

At such an extensive industrial plant, however, with 
its own interior tracks and its own locomotives for serv- 
ice upon such tracks, it is usually inconvenient and even 
hazardous for the locomotives of the railroad company 
to enter within the plant for service upon those tracks. 
At this kind of a plant it has, therefore, frequently been 
arranged that its locomotives take cars from and deliver 
cars to the tracks of the railroad company. Because of 
its enormous receipts and shipments of freight which 
can generally be made over one or more competing rail- 
road^ lines, such an industrial establishment has often 
compelled the railroad companies to pay to it, in consid- 
eration of its performance of the switching service, an 
amount much in excess of what it would cost the rail- 
road company to perform that service. When the tracks 
of the industrial establishment have extended over con- 
siderable distances connecting widely separated plants, 
as well as reaching to the tracks of a railroad company, 
the allowance to the industry has sometimes been a pro- 
portion of the regular transportation charge. That is, 
the tracks of the industrial establishment for which a 



325] L. G. McPherson 15 

separate and usually merely titular corporation has 
obtained a charter, have been considered as those of a 
separate railroad company, and the transportation charge 
as a through rate of which a proportion should accrue 
to it. Such a proportion of the transportation charge at 
different times and in different places has been made to 
manufacturing concerns of various kinds, to mining, and 
to lumber companies that have built tracks over which 
their own locomotives have performed switching service 
to and from the main tracks of a railroad. This prac- 
tice has been bitterly and justly condemned as one form 
of giving rebates. The industrial establishment owning 
tracks and locomotives for its own convenience has un- 
doubtedly through such payments obtained an advan- 
tage over competing plants not so equipped. It has been 
held under the English law that the public and lawful 
rate of a railroad company covers service rendered on its 
own tracks by its own instrumentalities. In its decisions 
in the cases brought by the General Electric Company 
and the Solvay Process Company the Interstate Com- 
merce Commission has held that a railway company is 
under no pecuniary obligation to an industrial plant for 
the performance by that plant with its own equipment 
of interior switching service. 

Tap Lines. — Of the same nature as the interior tracks 
of the great industrial plants are the "tap lines" owned 
by the lumber companies, of which there are a great many 
in the timber districts, connecting the places where timber 
is being cut with the tracks of the railroad over which it 
is conveyed toward the markets. Unlike the industrial 
tracks which form a network over the comparatively 
small area occupied by an industrial plant, a tap line may 
extend for a dozen or a score or more of miles from the 
railroad into the forest. It may be a common carrier to 
the extent of carrying the lumbermen back and forth 
and supplies for their use to the logging district, but in 



16 Economic Seminary [326 

all cases the function of the tap lines is primarily and 
overwhelmingly that for which they were constructed 
by the lumber companies. Especial allowance for switch- 
ing or proportions of the through rate have been allowed 
these tap lines just as such allowances have been made 
to industrial companies, and with the same effect of 
practically paying a rebate by which the lumber com- 
panies owning tap lines benefit to the disadvantage of 
lumber companies that do not. The question is before 
the Interstate Commerce Commission at this writing 
with every probability that its decision will be similar to 
that in the Solvay Process Company and General Elec- 
tric Company cases. 



THE SHEET MILL SCALE OF THE AMALGAMATED 
ASSOCIATION OF IRON, STEEL AND TIN 
WORKERS. 

By D. A. McCabe 

The wage scale experience of the Amalgamated Asso- 
ciation of Iron, Steel and Tin Workers is one of the most 
instructive in the history of American trade unions. This 
association has made use of all the important methods of 
wage regulation common to piece working unions and has 
in addition maintained systems of working and payment 
almost peculiar to itself. In this latter class belong the 
limited turn system and the employment and payment 
of skilled workmen, members of the union, by other mem- 
bers in the employment of the manufacturers. As these 
two features are found closely inter-related in the scales 
of the sheet mill division, one of the four divisions of the 
trade from which the union membership is recruited, the 



327] D. A. McCabe 17 

experience of this division with, them may be taken as 
illustrative of that of the association as a whole. 

The sheet mill division of the association is made up of 
the workers engaged in rolling iron and steel bars into 
sheets. The term "sheet mill" is usually applied collec- 
tively to the equipment of furnaces, rolls, presses, and 
shears used in converting the iron or steel bars into 
sheets. A sheet mill is thus a division or section of a 
complete iron or steel plant, which is also called a "mill." 
In the process of "rolling'' bars into sheets the bars are 
heated in pairs in a "pair furnace," rolled on a set of 
rolls, reheated in a "sheet furnace," doubled over on a 
press, and reheated and re-rolled until reduced to sheets 
of the required length and width. In the latter stages 
of rolling, sheets of the same length are "matched" and 
three or four rolled at once. After they have been rolled 
the sheets are trimmed to conform to the desired measure- 
ments on large knives or "shears." The sheet mill crew 
consists of a roller, a pair heater, a sheet heater and often 
a sheet heater's helper, a rougher and a catcher, who 
attend to the passing of the sheets through the rolls, a 
matcher, a doubler, and a shearman. Often additional 
helpers are employed, sometimes by the men themselves, 
to assist one or more of the regular members of the crew, 

The roller is in charge of the crew and responsible for 
the work. He is paid a specified rate per ton by the 
company on the output of the mill, and down to the year 
1905 he paid out of his rate the roller and catcher, whom 
he employed at a fixed rate per "turn," as the working day 
of a shift is called in the trade. The wage arrangement 
between the roller and the rougher and the catcher was a 
matter of union regulation. The pair heater, matcher, 
and doubler also worked for a time wage, but were paid 
by the company. The heater and shearman were paid by 
the company at tonnage rates proportional to that of the 
roller. 



18 Economic Seminary [328 

The limit of output for sheet mills has from the first 
been indirect. The limit for a day's work was originally 
adopted to protect the members of the crew who were paid 
by the day, and it has always appeared in the scale in the 
form of a specific number of pairs to be worked each turn 
by the day hands for a fixed daily wage. As these 
day workers made up a majority of the crew the 
limit on their day's work was in effect a turn limit for 
the crew, and was maintained as such. The day workers 
were under this limited turn system really piece workers 
with a fixed daily output, with the exception in their 
favor that if they did not reach the limit for a turn in ten 
hours' work they were to receive a turn's pay. 

The limit for a day's work first appeared in the Pitts- 
burg district Scale for 1881. It was soon copied in the 
scales of the other districts and later became a part of the 
general Western scale. The Pittsburg scale of 1881 
specified the wages to be paid per turn to the pair-heater, 
matcher, doubler, rougher, and catcher, and provided 
that a certain number of pairs of each class should con- 
stitute a turn's work. The number of the standard sizes 
allowed on doubling mills, which became much more 
numerous than single mills, was one hundred and five. 
It was also provided that fifteen pairs should be the limit 
for a heat. A turn's work was thus defined as one 
hundred and five pairs, or seven heats of fifteen pair 
each. For this the rougher and catcher were to reecive 
$2.80 each, to be paid by the roller, and the pair heater, 
matcher, and doubler $2.00, $1.85 and $1.75, respectively, 
on large double mills, and $1.85, $1.60, and $1.50 on small 
double mills, to be paid by the company. That part of 
the scale defining the wages and turn's work of the 
roughers and catchers was the result of an agreement 
made in 1880 by a joint committee of rollers and of 
roughers and catchers. 



329] D. A. McCabe 19 

The reasons which impelled the Amalgamated Associa- 
tion to set limits of output for its piece working mem- 
bers are those common to the piece rate unions. Piece 
work when unlimited, the unions contend, spurs the 
workers to over-exertion, which results in bodily injury 
and reductions in the piece rates. The increased outputs, 
especially those of the faster workers, induce the 
employers to cut the rates. The reduction forces the 
workers to strive for still larger outputs in order to 
regain the former total wage, and the enlarged outputs 
result in a still further reduction. Unless a limit be set 
to the amount of work each is to turn out the workers 
will be speeded up beyond their normal capacity without 
any corresponding increase in their wages, and fewer men 
will be employed. In the case of the time hands on sheet 
mills, a limit was felt to be especially necessary in that 
they were paid by the day and not by the piece. All these 
workmen were under the direction of the roller and the 
rougher and catcher were directly in his employ. Since 
the roller received a fixed rate per ton for all the 
sheets turned out, his men were subjected to the danger 
of being speeded up in their work without even a tem- 
porary increase in wages. This and the fact that they 
were engaged on a product for which payment could 
easily be calculated on a piece basis led to the adoption 
of piece limits for the time workers long before limits 
specifically for piece workers were inserted in the scale. 

The limits imposed in the 1881 scale were maintained 
until 1889. The scale adopted by the convention of that 
year and accepted by the manufacturers in the annual 
wage conference provided that eight heats should be 
allowed for a turn's work, and that for each turn of eight 
heats the day hands should be paid in proportion. This 
meant that the day hands paid by the company — the pair 
heater, matcher, and doubler — were to receive for the 
extra heat an advance of one-seventh over the nominal 



20 Economic Seminary [330 

turn wage still retained in the scale. The rougher and 
catcher also received an advance proportional to the 
increased output. In the scales of 1892-93 the limit was 
again raised. The turn's work was made nine heats, or 
one hundred and thirty-five pairs, and though the day 
workers' scale was still nominally that which had been 
paid for one hundred and five pairs, the actual rate was 
two-sevenths above that. 

The loss by the association in the strike of 1901 of 
several mills of the United States Steel Corporation 
which had previously been unionized and the increase in 
the number of non-union independent mills which fol- 
lowed that set-back to the association, made it impossible 
for the union to preserve its limits of output very long 
intact. The non-union mills were held to no such limits 
and the manufacturers who dealt with the union 
pressed constantly for increases in the limits or their 
removal outright. The holding of its position was made 
more difficult for the association by the continued over- 
stepping of the limits by individual members and even 
by whole lodges. The president and district officers com- 
plained repeatedly of excessive outputs and warned the 
members against violating their scale and constitution, 
but they were unable to stop the "over-production." The 
logical outcome was that the union had to surrender its 
limits. 

This was as true of the sheet mill division as of the 
others. In December, 1903, the independent sheet manu- 
facturers notified the union that they must be given a 
substantial reduction in wages and be freed from all 
limits on output; otherwise they would be compelled to 
close their plants or operate them with non-union men. 
In the special conference which was held between repre- 
sentatives of the sheet mill workers and the manufac- 
turers the latter proved that union members had made 
nine heats in five hours. As the result of this conference 



331] D. A. McCabe 21 

the union accepted an 18 per cent, reduction in wages 
and increased the limit to ten heats, or 150 pairs. This 
limit was continued through the next scale year, 1904-05, 
but in the 1905 conferences all limits were removed from 
both the sheet and the tin division scales. 

The abolition of the sheet limit put the time hands 
practically on an unlimited piece system. Though nomi- 
nally working for a fixed daily wage, they were paid 
according to the number of pairs turned out, at the rate 
provided in the scale on the basis of 105 pairs. In 1908 
the final step was taken and all the sheet mill workers 
were put on a tonnage basis. 

The practice of having the roller pay the rougher and 
catcher has also been given up. It was always a source 
of trouble to the union officials. Disputes were continu- 
ally arising between the roller and his rougher and 
catcher as to the pay and duties of these hands, and as 
these were disputes between union members, often mem- 
bers of the same lodge, they were particularly objection- 
able from a union standpoint. The presidents of the 
association repeatedly urged the conventions to put the 
time hands on a tonnage basis and so remove a fruitful 
source of grievances. In 1905 a provision was inserted in 
the scale that all hands specified in the scale should be 
paid directly by the company. Now all the members of 
the sheet mill crew except the sheet heater's helper, who 
is paid 35 per cent, of the heater's wages according to 
union rule, are paid by the company at tonnage rates. 



22 Economic Seminary [332 

THE FORM OF THE TRADE-UNION LABEL 
By E. R. Spedden 

There are three forms in which the trade-union label — 
using the term in its widest sense — is used: (a) a mark 
attached to a product, (b) sl shop-card to distinguish a 
place of business, and (c) a button to distinguish a work- 
man. The majority of trade unions use the label only as 
a mark placed on an article and ordinarily the term 
"Union Label" indicates this form of label. 

In 1907 the membership of the trade unions using the 
labels attached to the product was 458,600, or approxi- 
mately 27.9 per cent, of the entire membership of the 
American Federation of Labor. Those unions which use 
cards and buttons embraced approximately 309,600, or 
18.8 per cent, of the number of workmen affiliated with 
the American Federation of Labor. There are still other 
trade unions which use the label of the American Federa- 
tion of Labor, either because of the weakness of their 
organization or because their products are "subsidiary" 
to a complete product. Such unions are the Artificial 
Limb Makers, Badge and Lodge Paraphernalia Workers, 
Soda and Mineral Water Bottlers, Cloth Spongers and 
Finishers, Makers of Cigar Makers' Tools, Horse Shoe 
Nail Makers, Neckware Cutters and Makers, Suspender 
Workers and Steel Case Makers. 

Some trade unions are precluded from the adoption of 
a label because of the nature of the craft. The Granite 
Cutters and Stone Masons, for example, cannot use a 
label upon the stone because it could be readily removed 
and the employers refuse to allow any design to be cut in 
the stone. The Glass Bottle Blowers have the same diffi- 
culty. The only way in which bottles could be effectively 
labeled would be to have a facsimile of the label blown in 



333] E. R. Spedden 23 

the mold. The employers are unwilling to have this done, 
not because of any particular feeling of hostility toward 
the union, but because the molds are usually the property 
of those who have given the contract for the bottles. 
Though the employers may be willing to use the label, the 
firms who have given the contract for the bottles may be 
unwilling to have the label appear upon the goods or on 
the molds. 

The wording of the union label is in a few cases signifi- 
cant. With the majority of trade unions, however, it is 
of no special import. The Bakery and Confectionery 
Workers' label bears this legend : "A guarantee of living 
wages, wholesome and clean bakeries and factories and 
good workmanship.'' The label of the Boiler Makers and 
Iron Shipbuilders states that the product is made by 
union labor. The legend on the Cigar Makers' label reads 
as follows : "The cigars contained in this box have been 
made by a first-class workman, a member of the Cigar 
Makers' International Union of America, an organization 
devoted to the advancement of the moral, material and 
intellectual welfare of the craft." The Iron Molders' 
label reads : "This certifies that these castings have been 
made by competent, first-class workmen who are members 
of the Iron Molders' Union of North America, an organ- 
ization opposed to inferior and prison made goods." The 
Paper Makers' label indicates that the purpose of the 
organization is to demand "a living wage, reasonable and 
fair conditions for its members." The Upholsterers' label 
carries this sentence: "The upholstering upon which 
this label appears was done by a competent workman, a 
member of the Upholsterers' International Union of 
North America." 

Three factors enter into the determination of the 
efficacy of any form of trade-union label : publicity of the 
label, the nature of the material of which, the label is 
made, and the desires of the purchasers. 



24 Economic Seminary [334 

The label must be sufficiently prominent to be readily 
observed, yet the character of the product to which the 
label is attached influences the method of attachment to 
be adopted. Cigars might have the label on the box or even 
upon the individual cigars, if the cost were not too great. 
But hats and clothing must have an attachment of the 
label which preserves reasonable publicity without giving 
offense to a sense of propriety. 

The form of label adopted by the Hatters illustrates 
the influence of these factors very well. It is attached to 
the inside of the hat under the bow of the ribbon on the 
outside band; and is stitched in such a way that the 
thread of the label must pass through the bow. The label 
is concealed, and at the same time it may be readily found 
by any one desirous of having the label on the product. 

The clothing trades are governed by the same considera- 
tions in their choice of a mode of attaching the label. The 
United Garment Workers use a linen label attached to 
overalls and jumpers in the right hand pocket, on coats 
in the right hand inside pocket, on vests on the back 
strap and to the waist-band of trousers. Similarly the 
Tailors require the label to be attached "on coats in the 
inside of the breast-pocket. On vests in the middle of the 
back-strap, or the inside of the waist-band or on the inside 
of the watch-pocket. The label shall have the edges 
turned in and shall be stitched in by machine." The 
Bakery and Confectionery Workers find great opposition 
to the label pasted directly on the bread. On the other 
hand, the label affixed to wrapped packages of bread, 
cakes, candies and crackers meets with favor among the 
consuming public. In general, it may be said that in case 
of articles of food the label may be conspicuously dis- 
played, whereas in the case of articles of clothing, such as 
hats, caps, shoes, etc., the label must be less conspicuously 
attached. 



335] E. R. Spedden 25 

The Meat Cutters and Butcher Workmen use three 
forms of label; a label pasted on the carcass in the 
slaughter houses, another burned in boxes containing 
pork products packed by union workmen, and a placard 
to indicate a "Union Market." The Boot and Shoe 
Workers attach or rather imprint their label upon the 
sole, the insole, or, since 1902, the lining of boots and 
shoes made wholly by members of the union. The label of 
the Typographical Union provides sufficient publicity and 
causes little offense because of its mode of attachment. 

Many suggestions have appeared for a general label of 
the American Federation of Labor to be used by all affili- 
ated trade unions. The Hatters, United Garment 
Workers, Shirt, Waist and Laundry Workers, Meat Cut- 
ters and Butcher Workmen, Iron Molders, Upholsterers, 
Ketail Clerks, Barbers and Tailors have taken the lead in 
advocating the adoption of one form of label for all 
crafts. The Cigar Makers and the Boot and Shoe 
Workers have opposed any such proposal. Their argu- 
ments are: (1) that the distinctiveness of the label of 
each trade would be lost and since the needs of each 
craft are different, the principles upon which any demand 
for the label in a particular trade might be created would 
thus be destroyed; and (2) that the American Federation 
of Labor under such a system would of necessity control 
the label and the propaganda for it. The policy of the 
American Federation of Labor would thus be abandoned 
and the industrial form of organization would of neces- 
sity replace the existing form of trade affiliation. 



26 Economic Seminary [336 



THE CLOSED SHOP IN THE AMERICAN FEDERA- 
TION OF MUSICIANS 

By F. T. Stockton 

As in the case of other trade unions the Musicians were 
at first organized in detached bodies. While this state 
of affairs existed, the question of the closed shop was a 
matter of merely local concern. In general, it was felt to 
be distinctly a violation of sound principles for union 
men to play with; a non-union band, while expediency 
alone determined when a non-union man should be 
allowed to play in a union band or orchestra. 

The first central organization, the National League of 
Musicians, organized in 1886, enforced the closed shop 
with some strictness. Its membership was made up of 
men who had passed a rigid examination and conse- 
quently the leader or employer was given no excuse for 
hiring non-union men on the ground of the incompetency 
of union members. It was more or less a closed shop of 
talent and proficiency. 

With the introduction of the Musicians into the labor 
movement, following the formation of the present 
national organization — the Federation of Musicians — and 
their affiliation with the American Federation of Labor, 
the qualifications for membership have been changed so 
that professional musicians are admitted, with less 
regard to their ability, and consequently the proprietors 
and directors of bands and orchestras have repeatedly 
asserted the right to employ non-union men on the ground 
of the insufficient skill of union members. 

The Musicians insist that every member of the band 
shall be a member of the union. On account of the char- 
acter of the trade difficulties are sometimes encountered 
in carrying out this policy. Under several national rules, 



337] F. T. Stockton 27 

members have been forbidden to play with foreign musi- 
cians not eligible for membership, but the Executive 
Board may grant permission under exceptional circum- 
stances. Union members are allowed, however, to perform 
with foreign musicians taking out a conditional member- 
ship, prior to naturalization. American Indians are con- 
sidered foreigners, being ineligible to membership, and no 
member of the Federation can perform with Indian bands 
or render them any assistance unless they are on semi- 
governmental duties. Leaders of bands or orchestras 
except grand opera leaders must belong to the union. 
Members are not allowed to appear in public with 
amateur bands coming in competition with bands of the 
Federation. Some locals even forbid rehearsals with 
non-members. 

The union not only insists on the "simple" closed shop 
or the complete unionizing of a single band or orchestra, 
but it has greatly extended the application of the prin- 
ciple of the closed shop. This policy appears to have had 
its origin in particular circumstances, but it has now 
become general. The Federation for many years has 
refused to allow union bands to play in the same parade 
or on the same occasion with bands composed wholly or 
in part of enlisted men in the United States army or 
navy, unless these bands are engaged in the regular per- 
formance of their duties. The aim of this policy is to 
prevent army and navy bands from coming into competi- 
tion with civilian bands, and to confine them to their 
own field. The present Federation believes that the only 
way to stop government competition is to refuse to allow 
its members to take part in any function in which enlisted 
men are employed. A fine of fifty dollars is levied for a 
violation of these regulations, followed, upon second and 
third offense, by expulsion. 

Travelling bands and orchestras, particularly theatre 
orchestras, have been difficult to unionize, partly on 



28 Economic Seminary [338 

account of laxity of control over them in the matter of 
inspection of membership cards, etc. This has been 
largely remedied, however, by regulations providing that 
no orchestra composed of Federation members engaged 
to perform at a theatre by the season shall perform with 
travelling musicians including leaders other than grand 
opera leaders, who are not members in good standing. 
The card system is enforced to carry out this provision. 
Furthermore, travelling union musicians cannot perform 
at houses on the unfair list of the Federation, and can 
only perform at houses on the unfair list of any par- 
ticular local, provided no non-members are employed. 

The closed shop of the Musicians, however, is even 
more extensive than indicated above. The present rules 
require that a "reunion, festivity or performance" be 
considered in its entirety, and that it cannot be split up 
into separate divisions assigned to union and non-union 
bands. If a banquet and parade are parts of the same 
festivity, then a union band must not play for the banquet 
if a non-union one played for the parade. The only justi- 
fication for performing in any such function or parade 
with a non-union band, is that the non-union band comes 
from a locality over which no local union exercises juris- 
diction. Yet even in what are termed "local functions," 
the consent of the local union must be obtained before 
union bands can play with non-union bands. 

The union went a step farther in this policy in 1908 
in providing that all Federation bands contracting to 
furnish music at summer or winter places of amusement, 
either in a local or a foreign jurisdiction, for a short or 
long period, should incorporate in the contract a provision 
that none other than Federation bands should be 
employed there during the season. President Weber is 
doubtful whether this rule can be enforced, but has indi- 
cated his belief that the Federation should strive for it 
as an ideal. 



339] F. T. Stockton 29 

A peculiarity of the Musicians is that many of their 
members follow other trades. They insist that such 
members must join the union in his trade, provided the 
craft is organized and affiliated with the American 
Federation of Labor. Even if the union in this trade allows 
its members to work in open shops, the Musicians must 
work only in a strictly closed shop. Employers of labor 
are allowed to become members and play in union bands, 
provided they employ only union labor. In small locali- 
ties they are needed as competent musicians and besides 
it is considered wise to have them under union control. 
The president's decisions have frequently supported this 
rule. In return for such action, the Musicians expect 
union men of other trades not to organize bands. If such 
bands are organized, union musicians will not parade 
with them, even if the "scab" union band is accompanying 
its own organization on such an occasion as Labor Day. 

All the rules of the American Federation of Musicians 
with regard to the closed shop are in reality subject to 
considerable change to meet particular cases of expedi- 
ency. The President and the Executive Board have 
authority in most cases to suspend a rule for a certain 
local, and there have been a large number of such 
instances. 

No agreement for a joint closed shop has been entered 
into as yet with allied organizations such as the Actors 
and Stage Employees. Such an attempt would involve 
the Musicians in countless difficulties on account of the 
comparatively poor organization or unskilled character 
of such unions. Attempts have been made to require the 
ase by members of none but union-made music sheets, 
but such efforts have ended in failure. 

The Musicians' membership has been variously esti- 
mated to include from ninety to ninety-eight per cent, of 
all the professional musicians in America. If these 
figures can be taken as a basis, then at least ninety per 



30 Economic Seminary [340 

cent, of the bands and orchestras are strictly union. The 
great majority of concert bands and orchestras, theatre 
and grand opera orchestras and smaller local bands con- 
form to the closed shop rule. 

In enforcing the closed shop no officer resembling the 
shop steward of other unions is employed. Each member 
is hield personally responsible for working with non- 
members and is required to ascertain for himself the 
standing of each man with whom he performs. Only in 
the case of travelling musicians does a rule of the Federa- 
tion require the card to be shown to the local leader. A 
reasonable time is usually allowed a non-union man in 
which to apply for membership. 

The Federation has exceptional advantages for enforc- 
ing the closed shop, because in case of a demand for 
certain instruments, controlled by union men, a deter- 
mined stand on the part of a few men would cause the 
unionizing of a whole Symphony orchestra. The closely 
interlinked relation of employer and employee also 
affords a condition of minimum friction in the enforce- 
ment of all union rules Up to the present date the 
Federation seems to have had exceptional success in the 
carrying out of its closed shop policy. 



EARLY STATUS OF LABOR IN MARYLAND 

By H. Wirt Steele 

Maryland was settled under a royal charter, granted to 
Lord Baltimore, in 1634. Under this charter the Province 
was given the right to make laws for itself, the right to 
veto remaining with the authorities in England. The 
Lord Proprietor gave the privilege of initiating and enact- 
ing laws into the hands of the Assembly of the people. 



341] H. W. Steele 31 

The right to veto was rarely, if ever, exercised. The 
Assembly became immediately representative in form. 
The Proprietor was represented by his appointee, the 
Governor; there were half a dozen councilmen, and the 
freemen of the colony appointed representatives to speak 
and act for them in the Assembly, which met at the first 
little settlement of St. Mary's on the lower Potomac river. 

While the charter expressly stated that the foundation 
was made for the dual purpose of extending English 
territory and of carrying Christianity to a savage people, 
"who knew not God/' yet we find no records of a serious 
effort on the part of the colonists toward an evangeliza- 
tion of the Indians. On the contrary, the settlers began 
to make war on the Indians and to enslave the captives 
taken in such warfare. These Indians constituted the 
first servants of the colonists, to be followed very soon by 
blacks from Africa and indentured white servants from 
England and Ireland. 

The number of Indian servants held at any one time is 
not known, as they were always classed and counted withi 
the black slaves. 

Although the custom of Christians enslaving Christians 
had died out in Western Europe in the early Middle Ages, 
and villeinage even, had disappeared long before the 
settlement of America, the settlers found little difficulty 
in persuading themselves that they needed the institution 
of slavery in order to develop the province. When or by 
whom the first African slaves were brought to Maryland 
is not known, but there is a record in the Maryland 
Archives of a bargain between Governor Calvert and a 
certain shipmaster eight years after the founding of the 
colony whereby the shipmaster was to deliver thirteen 
slaves at St. Mary's. 

The status of slaves was not changed by their conver- 
sion to Christianity or by their baptism. The testimony 
of the negro or Indian was not received as evidence in law 



32 Economic Seminary [342 

in cases in which Christian whites were involved. Strin- 
gent laws were made respecting their marriage and issue. 
The marriage of blacks and whites was early forbidden, 
as was the intermarriage of bond and free. A white 
woman marrying a negro slave was obliged to become a 
slave herself, and her issue, if any, was obliged to serve 
as a slave for thirty years. White men marrying negro 
slaves were likewise impressed into servitude for varying 
terms of years, and the issue of such marriages were 
obliged to serve for thirty years. Negro slaves were taxed 
with an import duty of twenty pounds, and after importa- 
tion on the same basis as real estate, being assessed by 
the same officials who assessed other property. Efforts 
toward the abolition of slavery began early in the 
history of the colony and continued intermittently until 
the institution was abolished entirely by the constitution 
of 1864. Slavery seems to have been attended with many 
trying drawbacks as an industrial institution. Repeated 
references are found to losses occasioned by runaway 
slaves, by slave insurrections, and incidents of like 
nature. The punishment of slaves was severe, although 
probably less so than many historians have indicated. 
Laws relating to the punishment of slaves seem extremely 
severe, yet evidences of their rigid enforcement are rare. 

The humanitarian attitude of many masters toward 
their slaves and servants is shown in deeds of manumis- 
sion and gifts of land and goods with their freedom. 
There was no legal regulation of manumission for one 
hundred years after the settlement of the Province. 
During that time manumitted slaves could hold land, 
though there was a question as to their ability to convey 
it. Manumission became more common during the latter 
part of the eighteenth century, as indicated by the Acts 
of 1793. By that time slave owners were beginning to feel 
the burden of supporting old and decrepit slaves, and fre- 
quently gave such their freedom. According to the Act 



343] H. W. Steele 33 

cited, this, thereafter, became an illegal act. In cases 
where slaves were manumitted by will, they were sub- 
jected to taxation the same as other legacies, under the 
Act of 1844, which was upheld by the Court of Appeals 
in 1848. A little later, an attempt to impose the condition 
upon manumission that freed slaves should migrate to 
Africa or elsewhere was frustrated by a decision of the 
Court of Appeals. Manumission was prohibited in 1860, 
but was again granted by Act of 1864, six months before 
slavery was abolished. 

The freed negro was very generally discriminated 
against, socially and industrially. In January, 1807, a 
bill passed the House forbidding free negroes or mulattoes 
to move into Maryland. No settler could employ or 
harbor a non-resident free black. As late as 1823 a 
supplementary act declared that no length of residence 
would exempt such an immigrant negro or mulatto from 
punishment, and offenders might be punished again and 
again. Any negro who left Maryland and remained away 
over thirty days was deemed a non-resident. In 1839 the 
law was amended so as to except black or mulatto 
servants who were travelling with their masters, and, to 
encourage colonization, blacks and mulattoes might go 
and come at will between Maryland and Liberia. Later 
this was extended to Trinidad and British Guiana. 

The constitution of 1776 gave the right of suffrage to 
all free men who held a certain amount of property, and 
for a number of years some free blacks voted at the elec- 
tions, but an amendment to the constitution in 1810 
limited the right of suffrage to whites. Free negroes were 
drafted into the militia of the State, but we find little or 
no record of their efficiency or force, or of their numbers. 

Property-holding blacks were taxed for public school 
purposes without having provision made for the educa- 
tion of their children from the public funds. Later school 
taxes were levied in some counties upon parents of school 



34 Economic Seminary [344 

children only, but later separate schools for negro 
children were established in all the counties. 

Many occupations were open to free negroes, although 
they could not become licensed peddlers or masters of 
boats of any size on the Chesapeake Bay. It is notable 
that they had very little difficulty in securing licenses to 
sell intoxicating liquors, and many of them availed them- 
selves of this opportunity to get into business. By an 
Act of 1852 this privilege was taken away for the free 
blacks in Somerset, Worcester, and Anne Arundel 
counties. There are some records of disturbances between 
black and white artisans, one notable instance occurring 
in Baltimore City and involving two groups of ship 
caulkers. The city police had to be called upon to keep 
the peace. Many free blacks, lacking the restraint 
formerly provided by a strong master, became shiftless 
and vagrant. Such were frequently arrested and resold 
into slavery, usually for a fixed number of years. Others 
were committed to jail. The children of lazy, worthless 
negroes were bound out, as were the children of pauper or 
vagrant whites under the apprenticeship act of 1786. 
Free negroes were punished for all the minor offenses in 
similar method as slaves were punished, but not so 
severely. After the building of the penitentiary, in 1811, 
slaves were not committed to it, but free negroes were. 
After 1817 no colored person could be sentenced to the 
penitentiary for less than a year, and in 1825 the bill 
prohibiting the commitment of free blacks to the peni- 
tentiary was passed. Many such who would have been 
committed there were sold into slavery outside the State. 

The American Colonization Society was organized in 
1817 and carried on an active effort to transport free 
blacks and mulattoes to Liberia. Results of the work 
of this society do not seem to have effected either a great 
reduction in the number of free blacks in Maryland or to 
have warmed the feeling of the whites toward them. 



345] E. W. Steele 35 

During the following years we find many instances of the 
alarm of white settlers on account of reported insurrec- 
tions of negroes, although any authentic record of any 
such insurrections having occurred are lacking. 

Much of the real economic progress of the Province 
seems to have been made with the assistance of inden- 
tured, white servants, who were in effect practically 
slaves for a term of years. These servants were collected 
in England and Ireland by persons who were given a 
grant of land for bringing them to this country. They 
were, in many instances, persons too poor to pay their 
passage to the New World, who were willing to enter 
into a contract of servitude to secure transportation and 
an opportunity to get a start, after a number of years, 
here. Others were convicted offenders banished by order 
of the crown, still others were paupers and ne'er-do-wells, 
transported by order of the authorities. Many such 
servants later became members of the Assembly, and 
helped to frame laws favorable to the servant class. The 
institution, however, enabled the early settlers to estab- 
lish a landed aristocracy, which exerted a great influ- 
ence on the whole subsequent development of Maryland. 
Many such servants acquired land and themselves became 
a part of the gentry of the Province and the State. Some 
of them founded families which have long been prominent, 
socially and commercially, in Maryland. 



36 Economic Seminary [346 



THE SHORTER-DAY MOVEMENT OF THE 
CARPENTERS IN 1893-94. 

By E. T. Cheetham 

For twelve years preceding, there had not been such a 
depression in the building trades as in the winter of 
1892-93. More than one-half the carpenters of the country 
were out of work and many were actually suffering from 
a lack of the bare necessities of life. From all quarters 
came the cry of "dull trade" and "hard times." With the 
opening of spring trade conditions were somewhat ameli- 
orated until the panic came upon the country in June. 

The contractors at once felt the influence of the finan- 
cial stringency, as many intended building operations 
were abandoned and work under way was in many 
instances stopped. At the same time employers of car- 
penters attempted to take advantage of the situation to 
force the men who had been conceded the shorter day to 
work longer hours and for less wages, or, in other cases, 
to block the efforts for a shorter day. The mill men 
seemed to be a favorite object of attack. This was all 
the easier because the house carpenters were not in a 
position to refuse to handle sash and door work made in 
"unfair" mills. Their hold on the shorter day was often 
too feeble to be jeopardized by fighting the battle of the 
mill men. 

Various tactics were adopted by the employers to 
frustrate the shorter-day movement. The following are 
examples : 

1. The Germantown (Pa.) local had a nine-hour day; 
the employers offered the men a Saturday half-holiday in 
its stead, urging the men to work extra each day to make 
up the time. The local fought the change and maintained 
the nine-hour day intact. 



347] E. T. Cheetham 37 

2. The Washington carpenters consented to a reduc- 
tion of twenty cents a day, in the season of 1893, to secure 
the eight-hour day. In April of 1894 the contractors 
endeavored to return to a nine-hour basis with; the eight- 
hour rate of wages. They were unsuccessful, Washington 
remaining in the eight-hour column. 

3. In March, 1893, the Chicago carpenters renewed a 
two-year agreement with the Carpenters and Builders' 
Association for an eight-hour day at forty cents an hour. 
In September the contractors reduced wages ten to fifteen 
cents an hour. There was some excuse for the violation of 
their agreement; for, as early as May, there were fully 
7,000 idle carpenters in Chicago. There was a constant 
influx of carpenters seeking work, and the Chicago labor 
market was glutted. The question was ultimately 
referred to arbitrators, who awarded the contractors a 
reduction of five cents an hour on the wages and the men 
a continuance of the eight-hour day. 

4. In Boston a scheme of procrastination was adopted. 
The Builders' Exchange and Contractors of Boston 
promised in June, 1893, by agreement to grant the shorter 
day, to go into effect on November 1 of the same year. 
The men were jubilant and hailed this as a victory. But 
they were destined to disappointment, Boston not being 
placed in the eight-hour column until 1896. 

To add to the causes militating against the movement, 
especially in the weaker locals, the St. Louis Convention 
of the Carpenters held in 1892 had imposed increased 
dues. This no doubt strengthened the organization as a 
national body, but it forced out many small local unions ; 
and General- Secretary McGuire stated in his 1894 
biennial report that fully forty per cent, of the lapses 
in the two years preceding were due to that cause. 

In the midst of this period of stress the Carpenters 
did not lose heart, and not only set plans on foot to keep 
their organization intact, but fought all along the line 



38 Economic Seminary [348 

for the shorter day. Where it was impossible for men 
out of work to pay their dues indulgence was granted, or 
their dues were remitted in part or entirely. Strikes on 
other issues were avoided as far as possible and the 
strength of the organization was concentrated on the 
enforcement of the eight-hour day. The following table 
shows the number of cities involved in strikes in the 
panic period of 1893-94 as compared with the two years 
preceding : 

Number of Cities Involved. 

1891 1892 1893 1894 

For higher wages 24 29 28 

For eight hours a day 22 6 10 4 

For nine hours a day 107 65 27 7 

For shorter hours Saturday 3 15 6 

Against reduced wages 13 7 14 20 

Lockouts 6 

Total f69 128 85 31~^ 



Not only was a conciliatory policy pursued, but every 
effort was put forth to further the cause of the Carpen- 
ters in the shorter-day movement by means of public 
lectures by the ablest advocates of the Carpenters, sent 
out by the General Executive Board; by a reduction of 
initiation fees to a nominal sum so as to permit out-of- 
work non-union carpenters to join the union; by social 
gatherings, at which lecturers pleaded the cause of the 
union and where personal work was done to make 
converts. 

In the two years 1893-94, as the following table 
shows, the membership was reduced about one- third: 

T«Sa4« ™ o th-^ c Charters Net Gain Members Gain 

Year. L °n C ^ m n^tZ Surren- in No. of in Good in 

brooci framed. dered Locals. Standing. Members. 
Standing. 

1891 798 215 114 101 56,937 3,168 

1892 802 147 167 4 51,313 *5,624 

1893 716 104 190 *86 54,121 2,808 

1894 587 56 185 *129 33,917 *20,204 



*Loss. 



349] E. T. Cheetham 39 

The gain in members of 2,808 in 1893 and the loss in 
locals of 86 in the same year may be accounted for by 
the policy of consolidating locals to save expenses and to 
make the organization more efficient by united action. 
The table shows a loss of locals in the two years of 215, 
or about 21 per cent. As there was a loss of 17,396 in 
membership, or about 33 per cent., the percentage of loss 
was greater in membership than in locals. Therefore 
there must have been a considerable defection from the 
ranks of locals which, retained their charters. From the 
table above it appears that in 1891 there was an average 
of 63 members to a local ; in 1894 there was an average of 
only 58. 

Undoubtedly the most devoted men remained in the 
locals; the weak men left. The panic left the actual 
fighting men to carry on the battle unhampered by "camp 
followers." Indeed the treasury reports showed the 
financial strength of the union to be increasing. Whereas 
at the St. Louis Convention of 1892 there was a cash 
balance of $55.23, the books showed, on July 1, 1894, a 
balance of $5,275.54 ; and of the special organizing funds 
provided for at the St. Louis Convention there was a 
balance of $1,916.31, after expending $6,000.99 during the 
panic period. 

Finally, the following incomplete table, made up from 
lists of cities published in The Carpenter, shows an 
actual increase in the number of cities working eight and 
nine hours, in the period of 1893-94 : 

Number of Cities Working 8 and 9 Hours. 

1893 8 Hours 9 Hours 

February 47 400 

August 46 388 

September 46 380 

October 49 399 

November 49 402 

1894 

January 49 399 

February 49 



40 Economic Seminary [350 



March 49 404 

April 49 

July 51 412 

August 52 422 

September 52 422 

October 52 

November 422 

December 52 



CONVICT LABOR IN THE MARYLAND 
PENITENTIARY 

By A. O. Mullen 

During the past nineteen years, convict labor has been 
conducted in the Maryland Penitentiary with great finan- 
cial success, both to the State of Maryland and to the 
convicts confined in the institution. The labor is 
employed under the contract system, but the convicts 
remain entirely and directly under the authority and 
control of the Warden. 

At the close of the fiscal year in 1908 there were 427 
men and 86 women working for the Expert Manufactur- 
ing Company in the manufacture of shirts, 267 men work- 
ing for the Baltimore Boot and Shoe Manufacturing 
Company, making shoes, and 219 men at work for the 
Jones Hollowware Company, moulding and casting hol- 
lowware. 

The work done under these contracts is carried on by 
the task system. A certain amount of completed work is 
fixed as a task and this task the convict is required to do. 
For this the State receives whatever price is fixed by the 
terms of the contract. If the contractor does not furnish 
thje work, he must pay the State the stipulated sum 
whether the convicts assigned to him do any work or not. 
The assignment of convicts to the different contracts is 



351] A. 0. Mullen 41 

made personally by the Warden, who takes into account 
their previous occupations, and their physical condition 
at their reception. In case the convict does more than the 
task set for him — the task, of course, being a daily one — 
the contractor must pay him through the office of the 
penitentiary for whatever he does over and above, at the 
same rate as that which he pays the State for the task. 
If he is incapacitated by reason of ailment, sudden illness, 
etc., and is exempted from work by the Warden or 
physician, the State does not take all that he has made 
that day previous to his becoming incapacitated. For 
example, if he has worked a half-a-day, the State charges 
the contractor for half a day. His task, then, for that 
day becomes one-half a task and all that he has made over 
that one-half task is credited to him as overwork. The 
administration pursues this policy in order that the 
convict may feel that it is satisfied to have him share with 
the State as far as possible the reward for his labor. 

The tasks are fixed by the Warden, who of course hears 
whatever representations the contractors have to present, 
but in the end decides according to a well-defined plan. 
It is intended that the highest possible number shall be 
able to make at least some overwork and thereby earn 
something for themselves. The number who are unable 
to do more than a task is comparatively small. The 
contractors must take the convicts assigned to them and 
are not allowed to judge as to their ability or fitness for 
the work they are to perform. 

Thirty days are given the prisoner in which to learn his 
task and during that time the contractors do not pay, 
either the State or him, anything for his services unless 
they — the contractors — are satisfied to have him go on 
time, in which case the same obligations obtain as though 
the convict had served his thirty days' allowance for 
learning his task. From that time he must do his task 
and the contractors pay for him according to the terms of 



42 Economic Seminary [352 

the contract. If for any reason he is changed from one 
contract to another, the same rule applies as at the begin- 
ning. Of course when he is sick, excused or under punish- 
ment for misbehaviour he does not earn anything either 
for himself or the State. His earning capacity also ceases 
when he is taken off the contract and put to work for the 
State, i. e., to do the necessary work attendant upon the 
conduct of the institution, such as cooking, baking, 
tailoring, mending, etc. 

The contractors need also a number of convicts to do 
work for which it is impossible to fix a task. In these 
cases the State receives the regular price and the con- 
tractors pay the prisoners thus engaged an additional 
amount for themselves commensurate with the work they 
do. Thus it is possible for them to earn something for 
themselves. Some of the convicts who are especially 
adept and industrious, particularly those in the foundry, 
are able to put up so much work that after the iron is 
poured they cannot knock it down and cut their sand in 
the required time. In these cases the Warden allows 
them to hire a fellow prisoner to assist them with that 
part of it. Sometimes the helper receives as high as 
twelve dollars a month for these services. The amounts 
which the prisoners earn for themselves vary. Sometimes 
a man of exceptional ability and adeptness has earned 
as much as fifty or sixty dollars a month. The amount 
earned by the prisoners for themselves during the last 
twenty-one years, as recorded in the Annual Report of 
the Maryland Penitentiary for 1908, was $440,137.30. 

Only the labor of the prisoners is assigned to the con- 
tractors. The contractors have no judicial or corrective 
authority over the prisoners whatever. Neither the con- 
tractor nor his agents are privileged to call the prisoner 
to account for anything that he may do. While he is at 
work he is under the supervision of an officer of the 



353] A. 0. Mullen 43 

institution and if he needs correction or admonition it is 
done under the personal direction of the Warden. 

The money which is earned by the prisoners for the 
State is utilized in defraying the expenses of the institu- 
tion and what remains after these expenses have been met 
is turned over to the State at the close of each fiscal year 
as a surplus. That which the prisoner earns for himself 
he uses practically in the same way in which he would 
use it were he free. Sometimes he saves a considerable 
portion of it until the expiration of his sentence. If he 
has a family or dependents, he almost always assists 
them, and usually to a degree which closely approaches 
the limit of his ability. To be sure, the amounts at his 
disposal depend altogether upon his own ability and alert- 
ness in doing overwork. 

The Maryland Penitentiary is one of the prisons which 
undoubtedly occupies a separate place in the position to 
which it has advanced the system of convict labor. The 
one controlling factor which has thus elevated it, is just 
as undoubtedly to be found in the person of its present 
Warden, Mr. John F. Weyler. To Mr. Weyler is due that 
directive energy and those administrative qualifications 
which have made the Maryland Penitentiary what it is. 
With a well-settled opinion that the surplus which is 
turned over to the State, should as near as possible be 
paralleled by the amount earned by the convicts them- 
selves, he has kept the elements with which he has had 
to deal in such equipoise that he has been able to accom- 
plish this result almost to the dollar. The surplus in the 
twenty-one years of his wardenship has reached the sum 
of $442,974.82, while the earnings of the convicts in the 
same period, as before stated, was $440,137.30. 



44 Economic Seminary [354 

POLICY OF THE GLASS BOTTLE BLOWERS' UNION 
TOWARD MACHINERY 

By A. B. Morton 

The first machines for blowing glass bottles were the 
Arbogast and Ashley, introduced in the late eighties. 
Both of these were crude and defective but they proved to 
the industry that glass bottles could be made by machines. 
That they did have a definite influence is shown by the 
enactment of the following rule by the union : "No mem- 
ber of this association shall be allowed to blow bottles 
for any kind of finishing machine, — [or] to use Ashley's 
Bottle-blowing Machine or any other bottle-blowing 
machine for making bottles, vials and jars in any factory 
controlled by this association." 

In 1896 a machine for blowing fruit jars was introduced 
and it was so successful that others were soon installed 
in various parts of the country. The matter was brought 
up in the convention of the Glass Bottle Blowers and a 
committee advised that the union should take steps to 
secure for its members the exclusive right to operate the 
machine. The union was not convinced and refused to 
repeal the rule prohibiting the use of machines. 

It was estimated that during the season of 1897 one 
hundred and seventy workmen were thrown out of 
employment by the introduction of machines. The session 
of 1897 passed the following tentative resolution: 
"Whereas machinery and other inventions tending either 
to displacement of our members rendering it absolutely 
necessary that this organization provide employment for 
our members who are unable to make any other ware but 
fruit jars and those who by reason of age or otherwise 
who have found it impossible to keep pace with progress 
of bottle department and find their general skill inefifi- 



355] A. B. Morton 45 

cient, while we highly endorse the efforts of the organiza- 
tion in its increasing endeavors to obtain the fruit-jar 
machine without supervision, yet, in failure to accom- 
plish this end, we must necessarily provide against idle- 
ness and unemployment to any extensive degree in our 
midst, thus hindering wisely any stampede to non-union 
houses; with this in view, we earnestly recommend that 
the most careful attention, persistent thought and discus- 
sion be given this subject by the entire organization at its 
respective local meetings to the end that the convention 
may be enabled to become thoroughly acquainted with 
this new problem which we all realize is fraught with 
much concern." 

As the machines for making fruit jars were more and 
more widely introduced the officers of the union agreed to 
cut in half their list price in order to enable the employers 
of blowers to compete with employers using machines. 
The officers of the union endeavored also to secure work 
as operators of machines for the displaced craftsmen. 
In 1899 the rule forbidding members to work on machines 
was formally revoked and since that time the union has 
bent its energies to securing the work on machines for its 
members. 

The Glass Bottle Blowers' Association contested any 
attempt by the employers to reduce the wages of machine 
operators below that of other workmen. In the early 
types of machines, a skilled man was necessary to realize 
their full productive capacity. The union proved to the 
employer that its members were capable of operating the 
machine and claimed for them the same rate of wages 
that they had always had. 

The policy of obtaining jurisdiction over the various 
machines met with great opposition from the American 
Flint Glass Workers' Union. The "Flints" had been 
using machines in their prescription bottle department 
for some years. It may be well to state broadly the 



46 Economic Seminary [356 

position taken by the two unions, without going into 
details. The Glass Bottle Blowers' Association sought 
control over the operation of the machine on the ground 
that it was making a class of bottles which their mem- 
bers had formerly made and that if any mechanical 
device could assist in their production, the operation of 
such device was within their jurisdiction. The "Flints" 
took the view that since similar machines had been first 
operated by their members for making certain classes of 
ware, they had jurisdiction over it. The two views 
resolved themselves into the question as to whether 
jurisdiction followed the handicraft or the trade. This 
difference has been a source of weakness in dealing with 
the machine. The bitterness of feeling engendered has 
been evinced by the opposition which the Glass Bottle 
Blowers' Association has made to the grant of a charter 
by the Federation of Labor to its rival. 

In 1903 appeared the automatic bottle machine, in- 
vented by Michael Owen. Hitherto all types of machines 
had been confined to the manufacture of comparatively 
few classes of ware, — chiefly fruit jars; or to a particu- 
lar part of the manufacture, such as finishing ma- 
chines. The new type of machine was capable of 
making the completed bottle, and as it went through 
stages of development, showed itself able to compete in 
fields hitherto held by the blower. The importance of the 
automatic blowing machine was not realized until 1905, 
because of certain defects which restricted its utilization. 
The new machine, as its name indicates, displaces entirely 
all skilled glass-workers. It was employed at the outset 
entirely in the manufacture of cheap heavy-weight 
ware such as beer bottles and it soon controlled this entire 
field. Its influence on the industry can be best under- 
stood from an estimation made by President Hayes in 
1907: "The Automatic presents greater difficulties than 
the linotype because it operates independently of skilled 



357] A. B. Morton 47 

glass-workers, neither blowers, pressers, or gatherers 
being required. From one of these machines, working in 
1905, the number that will be in operation early the 
coming season will be 36. If statements concerning their 
productive capacity can be relied on, this number will 
make over 1,000,000 gross of bottles in a year. It works 
every hour in 24, and its season is not limited to 10 
months." 

During the early stages of its development the auto- 
matic machine was confined to making the cheap heavy- 
weight ware which, even under the older processes, did 
not require much; skill. This left the blower free from 
competition in the high-price light-weight goods, which 
demanded highly skilled workmanship and better grades 
of material. The machine is now making whiskey and 
catsup bottles and the limit of its field cannot be stated. 
In making drug, perfumery and chemical ware, the 
machine is not as yet effective. 

At the convention of the Glass Bottle Blowers held in 
1908, President Hayes reported that thirty-six automatic 
machines were already in operation and recommended 
that the union should adopt the following policy: (1) 
The organization of all classes of glass bottle makers in a 
single union. (2) The adoption of the three-shift system. 
By this means, a reduction in the h;ours of labor and a 
distribution of work would be accomplished. Also 
employers would be enabled to run their factories con- 
tinuously, and to compete more effectually with 
machinery. (3) "The prevention of an unnecessary 
surplus of workmen. ... In this respect our first 
duty would be to our present membership." 



48 Economic Seminary [358 

THE NON-UNION MAN IN THE SHEET METAL 

TRADE 

By F. E. Wolfe 

The term "non-union man" as used by the Sheet Metal 
Workers includes every man who works at the trade with- 
out joining the union, from the man who has never had 
an opportunity to join, to the professional strike-breaker. 
The term "scab" is used to designate a man who has 
renounced allegiance to the union. Some of the terms 
applied by the unionists to the non-union man are: non- 
unionist, anti-unionist, scab, "social renegade," "traitor," 
"industrial thief," "moral leper" and "industrial Ish- 
maelite." 

The reasons given in the Metal Workers' Union for 
hostility to the non-union man, roughly enumerated, are 
as follows : The non-union man, by accepting lower wages 
and longer hours, sets the standard of living for the 
whole craft; the non-union man, or "scab," deprives men 
of work who are often out on a just strike ; the non-union 
man who demands and receives union wages and hours 
reaps union advantages without sharing any of the 
burdens, and furthermore, in case of dispute with the 
employer is a possible menace to enforcing the union 
rules. The union's attitude toward the non-unionist as 
stated by one of the business agents is one of "con^ 
tempt and of pity," because of his ignorance. Mr. Bray, 
editor of the Sheet Metal Workers' Journal, says: "No 
man of honor will ever take the place of those who are 
forced to suspend work in their endeavor to obtain 
justice." 

The extent to which this hostile and contemptuous feel- 
ing toward the non-unionist may go was illustrated in one 
of the bitterest strikes in the history of the International 



359] F. E. Wolfe 40 

Alliance, — that of Local Union No. 65, of Cleveland, O., 
during nearly a year of 1905-06, for |3.00 per day mini- 
mum instead of $2.50. In his official report, November, 
1905, after the strike had been on nearly six months, the 
general organizer said : "The members of No. 65 are still 
fighting, and the way they are disposing of 'scab-made' 
material, and forcing the substitution of union-made 
material is most gratifying from our point of view." On 
one street a house was all completed, the metal work 
having been done by unfair men. All the sheet metal 
work on this building including cornice and skylights and 
steel ceilings was taken down and thrown into the street. 
On another job done by unfair men, the contract amount- 
ing to something like $3,000, every ounce of sheet metal 
work had to come off the building. In another place ten 
bay windows all covered with galvanized iron by "scab" 
labor were stripped and the material thrown away. A 
number of other ceiling, cornice, and skylight jobs, done 
by non-union men, were torn down. Each of these jobs 
was reconstructed by union men, while the strike was 
gradually being settled. 

It has been said that "if an industry is conducted in 
such a manner that non-unionists cannot be utilized to 
menace the position of unionists the lines are not drawn 
tightly," — that is, are not drawn tightly against non- 
union men. Mr. F. W. Hilbert in his paper on "Agree- 
ments in the Iron Molders' Union," states that at the 
time he wrote although few of the agreements of the Iron 
Molders provided for the exclusive employment of union 
men, yet there were many shops where only union men 
worked. The explanation lies in the fact, that the union 
had so thoroughly organized the trade that nearly all the 
best molders were in the union, and whenever a founder 
increased his force it must be with union men. Likewise 
when a founder tried to operate his foundry with non- 



50 Economic Seminary [360 

union men in time of strike, few skilled molders could 
be obtained. 

It may be safely stated that the Sheet Metal Workers 
have not yet reached a position where, by virtue of a large 
skilled membership, non-union men cannot be used to 
menace union conditions. In 1903 the number of mem- 
bers of the International Alliance reported at convention 
was 11,320; in 1904, 16,360; in 1905, 13,900; at the 1907 
convention, the last, 16,700, showing only a total increase 
of 240 members from 1904 to 1907, years of great indus- 
trial activity. The general organizer at the 1907 conven- 
tion reported that there were many cities with a popula- 
tion ranging from 25,000 to 150,000 without unions of 
sheet metal workers. 

A description of the extent of the organization of the 
Sheet Metal Workers in Baltimore will perhaps add 
concreteness to a statement of the causes of non-unionism. 
There are in Baltimore about 350 sheet metal workers 
in the union; and 400 outside the union. An official list 
of the union shows that there are in the city and vicinity 
forty-four shops that are "fair" to union sheet metal 
workers. The larger shops, with few exceptions, are 
"union." Personal visits to a sufficiently large number 
of both union and non-union shops lead to the conclusion 
that conditions in most of the latter shops are inferior to 
those in the former. Four of the most important non- 
union shops have previously been union shops. The 
reasons which employers give for going back to conduct 
non-union shops are the inefficiency of union men and the 
dictatorial methods of the union. Two of these employers 
claim they are giving union wages and hours to their 
employees, but this is contradicted by the unionists. 

Ineligibility and indifference to organization are the 
chief causes for the existence of the large non-union class. 
High initiation fees, dues, and assessments keep some men 
out of the union. The initiation fee in the International 



361] F. E. Wolfe 51 

Alliance is a sum equal to the amount made in one 
hundred hours of work according to the wage scale of 
each local union. In Baltimore, for example, it is thirty- 
seven and one-half dollars. Ineligibility is responsible 
for part of the non-unionists. According to the business 
agent of the Baltimore union about 200 of thie 400 non- 
unionists are ineligible. The by-laws of the Baltimore 
union provide for the examination of all applicants for 
membership by an examining board. All who have not 
served the three-year apprenticeship, or who are known to 
be incompetent from any cause, or who cannot satisfy the 
examining board as to their ability as mechanics are 
denied admission. 

The Sheet Metal Workers exercise pressure on non- 
unionists to join by excluding them from working with 
unionists. In 1902 an agreement was signed by the Sheet 
Metal journeymen and the Master Craftsmen of Balti- 
more, which contained the following provision : "The 
wages per day shall be $2.50 as a minimum: and only 
members of the union shall be employed, except in cases 
of emergency, when non-union men may be employed pro- 
vided at the expiration of one week they become members 
of the union." Since 1902 this policy of refusal to work 
with non-union sheet metal workers under any circum- 
stances, has been strictly maintained. No strike nor 
serious difficulty has been reported as a result of enforc- 
ing this position. The present by-laws of the union pro- 
vide that "no member shall be permitted to work on any 
building where non-union sheet metal workers are 
employed" ; nor "shall be permitted to use, work or erect 
any material manufactured in a non-union or unfair 
shop." Members, however, will work on jobs at which 
non-union men in other trades not well organized are 
employed. Action has been taken recently to avoid, by 
means of the assistance of the Building Trades Depart- 



52 Economic Seminary [362 

ment of the American Federation of Labor, the working 
with non-union men even under these conditions. 

The earliest International Sheet Metal Workers' con- 
stitution available, that of 1891, provided and each suc- 
ceeding constitution has provided that "there shall be 
appointed by the president of the local union in each shop 
represented therein, a steward, whose duties shall be, 
when a non-union man comes to work in said shop to 
invite him in a gentlemanly manner to join the union, 
and if he refuses to do so, the steward shall report him to 
the union for such action as they deem best." 

Local conditions have, however, usually been allowed to 
determine the action of locals in dealing with non- 
unionists. In 1902, Local Union No. 13, of Chicago, 
signed an agreement with the employers of that city and 
Cook county by which members of the union were to work 
with non-union metal workers on any building, or in any 
shop, or job, if a sufficient number of union men could 
not be furnished; no sheet metal worker was to leave 
work because non-union men in some other line of work 
or trade were employed at the same job. Local Union 
No. 346, Assortment Workers of Cincinnati, in 1905, 
struck a shop to compel one non-unionist to join the union 
or leave the work, and were successful. In 1905 Local 
Union No. 135, of Jacksonville, Fla., was allowed by the 
Executive Board of the International Alliance to use its 
own best judgment as to whether or not it would work 
with non-union men. In 1906 Local Union No. 39, of 
Syracuse, N. Y., after being on strike eleven months, 
entered into an agreement with their employers by which 
they were to work with non-union men. The president of 
the International Alliance at once revoked the charter of 
the union on the ground that the principles of their inter- 
national laws and of the trade union movement had been 
violated. 



COURSES IN POLITICAL ECONOMY 

Offered by The Johns Hopkins University 
graduate courses 

The graduate instruction in Political Economy is 
designed primarily to meet the needs of advanced students 
preparing for a professional career in economic science. 
The courses afford systematic instruction in general 
economic principles, intimate acquaintance with special 
fields of economic activity, and, most important of all, 
knowledge of and ability to employ sound methods of 
economic research. The work centres in the Economic 
Seminary, the membership of which is limited to the 
most advanced students, and the primary design of which 
is to develop scientific research in economic study and 
investigation. 

Formal graduate instruction is offered in Economic 
Theory and in Applied Economics, by parallel courses of 
lectures throughout the year. The particular topics 
treated vary from year to year. In 1907-08 Professor 
Hollander lectured two hours weekly on the development 
of economic doctrines since Adam Smith, and two hours 
weekly on American commonwealth finance. During the 
year 1908-09 attention was given, in the course on eco- 
nomic theory, to economic thought before Adam Smith. 
In the course on applied economics, careful study was 
made of the theory and practice of exchange. Dr. Bar- 
nett lectured during the first half-year on the historical 
development of statistics, and during the second half-year 
on methods of statistical investigation. Special courses 
of lectures were given during the year by Mr. John M. 
Glenn, Director of the Russell Sage Foundation, on 
"Problems of Relief" ; by Mr. Logan G. McPherson, of 
New York, on "Railway Transportation"; by Professor 
Winthrop M. Daniels, of Princeton University, on "The 

53 



54 Economic Seminary [364 

Nature of Competition"; by Professor Carl C. Plehn, of 
the University of California, on "State Taxation in the 
United States." 

The courses offered for 1909-10 are as follows : 

1. The Economic Seminary. 

Professor Hollander and Associate Professor Barnett. Two 
hours weekly, through the year. 

The work of the year will continue to be a systematic study of 
the history, structure, and activities of labor organizations in the 
United States. 

2. Economic Theory. 

Professor Hollander. Two hours weekly, through the year. 

During the first half-year careful study will be made of the 
economic system of David Ricardo. During the second half-year 
attention will be given to tne doctrines of the French Economists. 

3. Applied Economics. 

Professor Hollander. Two hours weekly, through the year. 

During the first half-year the history of taxation will be 
traced. During the second half-year recent fiscal experiments in 
the United States will be examined. 

4. Labor Legislation. 

Associate Professor Barnett. One hour weekly, through the 
year. 

During the first half-year, the development of factory legisla- 
tion and systems of workingmen's insurance will be considered. 
During the second half-year, the legal position of trade unions 
will be treated. 



Special courses of lectures will be given by non-resident lec- 
turers upon such practical economic problems as charities and 
correction, railway transportation, industrial organization. 

A reading class is organized yearly by the more advanced 
students of the departmenc for the co-operative study of economic 
texts and for the critical discussion of current economic litera- 
ture. 

In co-operation with the departments of history and political 
science, opportunity is offered in the Historical and Political 
Science Association for the presentation and discussion of original 
papers in economic science by instructors and invited speakers, 
and for the review by students of current publications of impor- 
tance in these fields. 

UNDERGRADUATE COURSES 

1. {a) Economic History. 

The economic development of England from the tenth century 
to the present time and the most important experiences of the 
United States are studied. 



3G5] Political Economy 55 



Three hours weekly, first half-year. Associate Professor Bar- 
nett. 

(&) Elements of Economics. 

Particular attention is given to the theory of distribution and 
its application to leading economic problems. 

Three hours weekly, second half-year. Associate Professor 
Barnett. 

2. {a) Finance. 

The theory and practice of finance are considered, with par- 
ticular reference to problems of taxation as presented in the 
experience of the United States. 

Three hours weekly, first half-year. Professor Hollander. 

(6) Money and Banking. 

The principles of monetary science are taught with reference 
to practical conditions in modern systems of currency, banking, 
and credit. 

Three hours weekly, second half-year. Professor Hollander. 

3. (a) Statistical Methods. 

After a preliminary study of the value and place of statistics 
as an instrument of investigation, attention is directed to the 
chief methods used in statistical inquiry. 

Three hours weekly, first half-year. Associate Professor Bar- 
nett. 

(6) Economic Institutions. 

Labor unions, corporations, and trusts are studied primarily as 
elements in the organization of industry. 

Three hours weekly, second half-year. Associate Professor 
Barnett. 

Note. Course 2 is open only to such students as have completed 
course 1; and, save under exceptional circumstances, course 3 
only to students who have completed 1 and 2. 



TRADE-UNION STUDIES 



Since October, 1902, the Economic Seminary of the Johns Hopkins 
University has been largely engaged in investigating certain phases of 
American trade-unionism. Some results of this investigation have 
been published, as follows : 

The Finances of American Trade Unions. By A. M. 

Sakolski. (Paper) 75c. (The Johns Hopkins Press, Balti- 
more, Md. ) 

National Labor Federations in the United States. By 

William Kirk. (Paper) 75c. (The Johns Hopkins Press,- 
Baltimore, Md. ) 

Apprenticeship in American Trade Unions. By James 
M. Motley. (Paper) 50c. (The Johns Hopkins Press, 
Baltimore, Md. ) 

Beneficiary Features of American Trade Unions. 

By James B. Kennedy. (Paper) 50c. (The Johns Hopkins 
Press, Baltimore, Md.) 

Bibliography of American Trade-Union Publications. 

Second Edition. Edited by George E. Barnett. (Paper) 
75c. (The Johns Hopkins Press, Baltimore, Md. ) 

Studies in American Trade Unionism. Edited by J. H. 
Hollander and G. E. Barnett. (Cloth) $2.75. (Henry 
Holt & Co., New York.) 



A REPRINT OF ECONOMIC TRACTS 



The Johns Hopkins Press invites subscriptions to a reprint of four 
important economic essays of the eighteenth century, to be issued con- 
secutively under the editorial direction of Professor Hollander: — 

The Querist* containing several queries, proposed to the consider- 
ation of the public. Parts I, II, III. By George Berkeley. 
Dublin, 1735-37. 

An Essay on the Governing Causes of the Natural Rate of 
Interest ; wherein the sentiments of Sir William Petty and Mr. 
Locke, on that head, are considered. By Joseph Massie. 
London, 1750. 

Money answers all Things : or an essay to make money sufficiently 
plentiful amongst all ranks of people, and increase our foreign 
and domestick trade. By Jacob Vanderlint. London, 1734. 

An Essay on Ways and Means for raising Money for the 
support of the present war, without increasing the 
public debts. By Francis Fauquier. London, 1756. 

Each tract will be supplied by the editor with a brief introduction 
and with text annotations where indispensable. The general appear- 
ance of the title-page will be preserved, and the original pagination 
will be indicated. 

The edition will be limited to five hundred copies. With a view to 
serving the largest student usefulness, the subscription for the entire 
series of four tracts has been fixed at the net price of Two Dollars. 



Of the tracts heretofore reprinted, a limited number can yet be 
obtained, as follows. As the editions approach exhaustion, the prices 
indicated are likely to be increased without notice: — 

Asgill, "Several Assertions Proved." London, 1696. Price, 50 cents. 
Barbon, "A Discourse of Trade." London, 1690. Price, 50 cents. 
Fortrey, "England's Interest Considered." Cambridge, 1663. 
Price, 50 cents. 

Longe, "A Refutation of the Wage-Fund Theory." London, 1866. 
Price, 75 cents. 

Malthus, "An Inquiry into the Nature and Progress of Rent." 
London, 1815. Price, 75 cents. 

North, "Discourses upon Trade." London, 1691. Price, 50 cents. 

Ricardo, "Three Letters on 'The Price of Gold.' " London, 1809. 
Price, 75 cents. 

West, "Essay on the Application of Capital to Land." London, 
1815. Price, 75 cents. 

Subscriptions and orders should be sent to 

The Johns Hopkins Press, 

Baltimore, Maryland, 



THE JOHNS HOPKINS PRESS OF BALTIMORE 



American Journal of Mathematics. Frank Mobley, Editor. 

Quarterly. 4to. Volume XXXI in progress. $5 per volume. 

(Foreign postage, fifty-cents.) 
American Chemical Journal. Iba Remsen, Editor. Monthly. 

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Studies in Historical and Political Science. Under the direc- 
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Political Science. Monthly, 8vo. Volume XXVII in progress. 

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Contributions to Assyriology and Semitic Philology. Paul 

Haupt and Fbiedbich Delitzsch, Editors. Volume VI in 

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American Journal of Insanity. Henry M. Hubd, Editor. Quar- 
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Reprint of Economic Tracts. J. H. Hollandeb, Editor. Third 

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Register of the Johns Hopkins University. Giving the list of 

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Communications should be addressed to 
The Johns Hopkins Press. 



:Zec 
10 m 

THE 

JOHNS HOPKINS 
UNIVERSITY CIRCULAR 



THE 

ECONOMIC SEMINARY 
1909-10 



Baltimore, Maryland 

Published by the University 

Issued Monthly prom October to July 

April, 1910 



[New Series, 1910, No. 4] 
[Whole Number, 224] 



Entered, October 21, 1903, at Baltimore, Md., as second class matter, under 
Act of Congress of July 16, 1894. 



lik* ftle kiiitl iistci; taw; 



JOHNS HOPKINS UNIVERSITY CIRCULAR, No. 224 

APRIL, 1910 
CONTENTS 

PAGE 

The Economic Seminary, 1909-10 1 

The Ricardian Background. By Jacob H. Hollander, . 3 
The "One Man Office" and the Typographical Union. By 

George E. Barnett, 8 

The Size of European Freight Cars. By Logan G. McPherson, 15 
The ' 'Check-Off System' ' : A Method of Closed Shop Enforce- 
ment. By Frank T. Stockton, 19 

Convict Labor in the Maryland Penitentiary. By A. 0. 

Mullen, 25 

The Bricklayers in the Shorter Day Movement, 1865-75. By 

E. T. Cheetham, 30 

Restriction of Admission to Membership in the Glass Bottle 

Blowers' Association. By F. E. Wolfe, 34 

Machinery in the Window Glass Trade. By A. B. Morton, 38 
The Early Cigar Makers' Union of Baltimore, 1856-1863. By 
M. H. Hourwich, 43 

Courses in Political Economy Offered by The Johns Hopkins 
University, 47 

Trade-Union Studies, 51 

A Reprint of Economic Tracts, 52 

Current Notes, 53 



THE 

JOHNS HOPKINS 
UNIVERSITY CIRCULAR 

New Series, 1910, No. 4 APRIL, 1910 Whole Number, 224 



THE ECONOMIC SEMINARY, 1909-1910 

Edited by Professor Jacob H. Hollander and Associate 
Professor George E. Barnett. 



The Economic Seminary has continued during the cur- 
rent academic year its investigation of American trade 
unionism. Substantial progress has been made in prose- 
cuting the inquiries already begun, and certain other 
aspects of the subject are being studied, notably, trade 
union jurisdiction, and the history and activities of the 
Cigar Makers' Union. In the summer of 1909 each mem- 
ber of the Seminary carried on field work in connection 
with the particular phase of the subject in which he was 
interested. The summer work was fruitful also in add- 
ing materially to the large collection of trade-union pub- 
lications in the possession of the University. 

During the year the American Economic Association 
published as one of its monographs "The Printers: A 
Study in American Trade Unionism," by Dr. George E. 
Barnett, — an outgrowth of Seminary activity. 

Three monographic studies, submitted by members of 
the Seminary, in part fulfillment of the requirements for 
the doctor of philosophy degree are now in press, for is- 



2 Economic Seminary [264 

sue in the Johns Hopkins University Studies in Histori- 
cal and Political Science, XXVIII Series, as follows: 
"The Trade Union Label/' by Ernest R. Spedden; "The 
Standard Rate in American Trade Unions," by David A. 
McCabe; and "The Government of American Trade 
Unions," by Theodore W. Glocker. 

The record of the proceedings of the Seminary, and 
abstracts of certain papers presented are appended: 

Oct. 14 — Reports on summer field work by Professor Hollander, 
Dr. Barnett, Messrs. Stockton, Mullen, Cheetham, Wolfe and 
Morton. 

Oct. 20— "The Swedish General Strike," contributed by Mr. 
Gosta Bagge, of the Swedish Labor Bureau. 

Oct. 27— "The Simple Closed Shop," by F. T. Stockton. 

Nov. 11 — (a) "The Shorter Work-Day Movement in American 
Trade Unions," by E. T. Cheetham; (&) "Investigations by the 
British Board of Trade Into American Industrial Conditions," 
by J. R. Cahill, of London, England. 

Nov. 17 — "Some Conclusions from a Study of the Printers," by 
Dr. George E. Barnett. 

Dec. 1 — "The Injunction Proceedings in the Case of Buck Stove 
and Range Company vs. Samuel Gompers, John Mitchell and 
Frank Morrison," by Dr. W. F. Dodd. 

Dec. 9 — "The History of Convict Labor in the Maryland Peni- 
tentiary from 1831 to 1851," by A. 0. Mullen. 

Dec. 15 — "Membership in the Molders' Union," by F. E. Wolfe. 

Jan. 7 — "The Glass Industry," by A. B. Morton. 

Jan. 12 — "Some Aspects of Trust Finance," by Prof. Royal 
Meeker, of Princeton University. 

Jan. 20— "The Extended Closed Shop," by F. T. Stockton. 

Jan. 26— "A Theory of Railroad Freight Rates," by Prof. Royal 
Meeker. 

Feb. 3 — "Early Social Legislation in Maryland," by H. Wirt 
Steele. 

Feb. 9 — "Tenement House Factories and Immigration," by 
Marie H. Hourwich. 

Feb. 17 — (a) "The Window Glass Workers," by A. B. Morton; 
(ft) "White Servitude in Maryland," by H. Wirt Steele. 

Feb. 23— "Effect of Machinery in the Glass Trade," by A. B. 
Morton. 

Mar. 3 — "The Mechanism of Closed Shop Enforcement," by F. 
T. Stockton. 

Mar. 9 — "Membership in the Unions of the Glass Industry," by 
F. E. Wolfe. 

Mar. 17 — "Convict Labor in the Maryland Penitentiary from 
1851 to 1895/' by A. O. Mullen. 



265] J. H. Hollander 3 

Mar. 23 — "Membership in American Trade Unions," by F. E. 
Wolfe. 

Mar. 31 — "The Early Cigarmakers' Union of Baltimore," by 
Marie H. Hourwich. 

Apr. 6— "The Joint Closed Shop," by P. T. Stockton. 

Apr. 14 — (a) "The Shorter Work-Day Movement in the Brick- 
layers' Union," by E. T. Cheetham; (&) "The Development of 
Labor Legislation in Maryland," by H. Wirt Steele. 

Apr. 20 — "Union Alliances in the Printing Trade," by Dr. 
George E. Barnett. 



THE RICARDIAN BACKGROUND 
By Jacob H. Hollander 

Ricardo was born in 1771 and died in 1823. Just as 
Adam Smith's career extends over the second and third 
quarters of the eighteenth century, Ricardo's life thus 
includes the last quarter of the eighteenth century 
through the first quarter of the nineteenth. It is practi- 
cally coincident with the fifty years of English history 
which intervene between the American Revolution and 
the full recovery from the Napoleonic War, which remove 
the organization of the London Clearing House in 1775 
from the panic of 1825, and which separate the appear- 
ance of the "Wealth of Nations" in 1776 from the issue of 
McCulloch's "Principles of Political Economy" in 1825. 
To the historical economist, it is the fifty years of the 
Industrial Revolution ; to the political historian, it is the 
half century of the Napoleonic Influence ; to the historian 
of economic thought, it is the dawn and early morning of 
the classical political economy. 

In this half century there are at least three phenomena 
which in absolute importance and in far-reaching influ- 
ence, dominate the period. These are agricultural fer- 
ment, industrial activity and financial expansion. It is 
hardly too much to say that from 1775 to 1825, no intelli- 
gence in any degree interested in economic happenings 
was evolved in England which did not in its growth 



y 



4 Economic Seminary > [266 

reflect the presence and working of these factors. They 
loom forth with determining boldness in what might be 
termed the Ricardian background, and they constitute 
over and above everything else the material elements in 
Ricardo's mental history. 

The three phenomena are organically related and the 
clue to the sequence is the progress and issue of the con- 
test with Napoleon. The fifty years of struggle, imper- 
fect recovery, renewed war and economic growth were 
characterized by tremendous increase in the nation's 
resources, consequent upon profound changes in its eco- 
nomic life. The England of 1750 must have succumbed 
at an early stage to the life-sapping strain of the contest. 
That the staggering burden could be borne at all by 
England of the next half century, and that eventual suc- 
cess attended what had resolved itself into a sheer con- 
test of endurance was the result of a great industrial 
expansion, entailing a radical change in agricultural life, 
and involving heavy burdens of taxation and indebtedness 
made possible by the new efficiency of private finance. 

In 1775 England — barring extreme seasonal fluctua- 
tions — was still a grain exporting country. In the decade 
from 1780 to 1791 the annual surplus was much reduced, 
and in the next period of ten years, with rapid increase 
of population, wheat exports ceased. During the whole 
struggle with Napoleon and for five years thereafter, the 
average annual imports of wheat alone was well over a 
half million quarters. From 1820 to 1825 extraordinary 
crops rendered recourse to foreign markets unnecessary; 
but thereafter importations were resumed in heavier 
scale, and the average for the decade materially exceeds 
the figure for the preceding years. From 1775 to 1825, 
despite extension of cultivation and improvement in 
methods England was thus engaged in what seemed to be 
an unsuccessful attempt to feed herself. Instead of pro- 
ducing an actual food surplus, a considerable amount 



267] J. H. Hollander 5 

of the industrial product of the nation was annually 
surrendered in exchange for the imported food deficit. 

The result was an intense struggle on the part of the 
English agriculturist and his sympathizers to preserve 
the home market by maintaining the domestic price of 
grain at what was vaguely called "a remunerative price." 
It was this struggle aggravated by mistaken protectionist 
legislation, tending at times to a domestic glut and made 
vehemently articulate by the social and political promi- 
nence of the land-moving class, with a consequent intense 
sensitiveness of Parliament and public opinion to agricul- 
tural complaints — that constitutes the agricultural fer- 
ment which pervades the economic life of the half century. 

This seeming food deficit resulted from no absolute 
dearth or physical exhaustion of English soil. England 
was well able if necessary to feed herself. Foreign grain 
was imported, in accordance with a principle first eluci- 
dated by Kicardo and since generally accepted as a theory 
of international value, in consequence of the superior pro- 
ductivity of English industry incident to the wonderful 
succession of technical improvements that changed the 
nature and form of that industry in the closing quarter 
of the eighteenth century. It was because of this great 
industrial expansion, of which machinery, the factor sys- 
tem and capitalistic regime were essentials, that England, 
making more finished goods and making them more 
cheaply, found it advantageous to send these in exchange 
to countries of richer soil, rather than to raise her own 
food supply. 

The successive phases of this industrial development 
are set forth, in external form at least, in every manual 
of English social history. A remarkable series of tech- 
nical inventions and natural discoveries in relation to 
labor processes were more and more changing the whole 
form and complexion of industrial effort in England. A 
given labor force working with the new appliances and 
under the new conditions was able to bring forth an in- 



6 Economic Seminary [268 

credibly greater per capita product. Moreover the volume 
of the labor force itself was increasing — and increasing 
not only absolutely but relatively. A population grow- 
ing at an accelerated rate was available, and of this popu- 
lation a larger and larger proportion were drawn into the 
factories. 

Passing the tremendous changes in the social life of the 
people, and particularly of the wage-earning classes, 
which this decline of the old domestic system and the 
rapid growth of industrial at the expense of agricultural 
life meant, the conspicuous fact is that in this sustained 
industrial expansion of a half century, lies the explana- 
tion of that amazing growth of the nation's resources 
which eventually determined the political destinies of 
Europe. 

It is a commonplace to speak of Waterloo having been 
won in the chimneyed factories of England. What is 
perhaps less well understood, and for the intellectual his- 
tory of the period even more important, is the widespread 
social consciousness of this very fact, that England's 
resisting power depended upon the flourishing condition 
of her manufactures and upon the maintenance, undi- 
minished, of industrial profits. This sentiment was not 
voiced as loudly as the agricultural plaint, for the new 
industry had neither political influence nor social promi- 
nence. But it pervaded business and financial circles and 
became the veritable milieu of economic thought. 

Just as industrial activity was the occasion of agricul- 
tural ferment it was the possibility of financial expansion. 
The huge additions to the national wealth incident to the 
new industry were transmuted into the fleets and armies 
that made possible the long struggle with Napoleon. The 
crucible was an unparalleled resort to taxation and fund- 
ing, aided by the new efficiency of English private finance. 
In the matter of taxation, it was the avowed policy of 
Pitt and his successors to pay the nation's current 
expenses in so far as possible out of the year's receipts. 



269] J. H. Hollander 7 

In this they never succeeded, but in the endeavor they 
were forced to make great additions to existing taxation. 
Over and above its own concern, taxation thus became 
in these new and sometimes crude forms the scape-goat 
for much of the social distress incident to the deprecia- 
tion of the currency, agricultural depression and indus- 
trial reaction. 

The chronic deficiency in revenue was met by extraor- 
dinary drafts upon public credit. From the commence- 
ment of the war in 1793, government loans were con- 
tracted every year, and exchequer and navy bills were 
funded at frequent intervals. The funded debt of Britain 
which before 1793 stood at £238,231,248 reached a total 
of £567,008,978 in 1802, of £734,737,786 in 1810, and of 
£1,003,768,694 in 1816; of this increase of £765,537,445, 
£658,506,728 was by new loans and £107,030,717 by fund- 
ing bills. In addition two loans were raised in England 
for the Emperor of Germany and guaranteed by the 
British Government, and a further loan was raised and 
guaranteed for the service of Portugal. 

In the early years of the funding system the method 
of open public subscription at fixed terms had been 
employed, the lists being exposed originally at the 
Exchequer and after 1814 at the Bank of England. But 
with the rapid succession of large loans and the wide 
fluctuations in public credit, the Chancellor of the 
Exchequer was obliged to abandon public subscription 
for a more certain procedure — the prototype of modern 
syndicate participation described in 1817 as already in 
vogue for a considerable number of years. 

Out of this swelling stream of industrial profits seek- 
ing funded investment on the one hand, and the insati- 
able demands of necessitous finance ministers on the 
other, was evolved that organization of private credit 
with which the beginnings of England as the capital 
center of the world are directly associated. The transi- 
tion is neatly enough marked by the circumstance that 



> 

8 Economic Seminary [270 

in the Peninsular War the British commissary general 
made desperate and unavailing efforts to supply the 
troops in the field by actual remittance of specie ; whereas 
in the Waterloo campaign through the co-operation of 
English banking interests possessing extensive inter- 
national exchanges the troops were paid and the foreign 
subventions met with the utmost facility and promptness 
without the remittance of a gold-piece. 



THE "ONE MAN OFFICE" AND THE TYPOGRAPH- 
ICAL UNION 

By George E. Barnett 

In a considerable number of the printing offices in 
every town or city the proprietor ordinarily does the 
work with the help of one or more apprentices, employing 
a journeyman to assist him when the work is plentiful. 
Such offices are commonly known in the printing trade 
as "one man offices." Their custom comes, for the most 
part, from the neighborhood : they print cards and cir- 
culars for the small merchants in their vicinity and 
execute somewhat larger jobs for the fraternal associa- 
tions with which the proprietor may be fortunate enough 
to form a connection. 

It might have been expected that the printers' unions 
would have exerted their strength to diminish the number 
of such offices. The unions are organized in order to 
secure better conditions for workmen who are employees, 
and their rules are directed to this end. If a large part 
of the workmen in the trade are also proprietors, the 
union may be greatly hampered in maintaining a high 
rate of pay, and in shortening working hours. The re- 
muneration for the labor of the proprietor of the one man 
office is included in the price he receives for the finished 
product, and when, in order to secure employment, he 



271] G. E. Barnett 9 

reduces the price for his product below the customary 
price, he is in effect working below the rate of wages 
prescribed by the union. If he were an employee work- 
ing in a union office, the union would not permit him to 
work at less than the standard rate. But it cannot for- 
mulate a list of prices for the product of the office, and 
cannot regulate the wages received by a proprietor. 

Until recently, however, the printers' unions did not 
antagonize the small offices. This attitude has been due 
to several considerations. In the first place, until the 
introduction of the label the union could not injure the 
business of such offices except in so far as the proprietors 
needed to resort to the supply of labor which the union 
controlled. If a master printer did his work without 
the aid of a journeyman printer, he was independent of 
the union. Secondly, the unions have ordinarily as- 
sumed that the small offices do a class of work which the 
larger establishments do not desire. This assumption, 
however, is only partially correct, and, especially in 
recent years, the larger offices have frequently com- 
plained in conferences with the representatives of the 
unions that the competition of the small offices reduces 
materially the prices for certain classes of work. They 
have urged that on account of such competition they are 
unable to raise wages or to reduce hours. Thirdly, the 
unions feel that a journeyman printer who desires to 
start in business as a proprietor should not be discrimi- 
nated against merely because he is beginning business 
in a humble way. Finally, in every strike in the larger 
offices some work which ordinarily goes to these offices 
is transferred to the small ones and the working force 
in the smaller offices is increased by the employment of 
some of the strikers. To the extent that this is possible, 
the one man shop is a useful auxiliary in any struggle 
with the larger offices. 

Some of the local printers' unions have always refused 
to admit proprietors to membership although they worked 



10 Economic Seminary [272 

at the trade; it was even held in 1876 by the president 
of the International Union that a printer could not be at 
the same time a proprietor and a member of the union, 
"since the two positions were incompatible." But the 
greater number of the local unions have admitted to mem- 
bership those proprietors who were printers, and all of 
the unions have allowed their members to work as em- 
ployers in small offices. 

The opposition to the one man shop which has developed 
in recent years has been due chiefly to the breaking up 
of the printers' trade into specialized branches. Until 
about 1850 practically all compositors could and did, on 
occasion, operate presses. The introduction of the steam- 
driven press developed a class of workmen who knew 
nothing of the trade of the compositor. As the press- 
man's trade became more and more distinct, the press- 
men began to look with disfavor upon the practise of al- 
lowing a compositor to do pressman's work. In 1884 the 
St. Paul and Minneapolis Pressmen's Union complained 
to the International Union, which at that time included 
local unions of compositors and of pressmen, that al- 
though the pressmen devoted themselves entirely to a 
single branch of the trade, certain compositors did press 
work as well as composition. The International accord- 
ingly adopted the following rule: "In cities where there 
are both pressmen's and typographical unions it shall be 
a, violation of law for a member to occupy the position of 
compositor and pressman." This rule was defective in 
that it contained no definition of the "position of press- 
man." Even if it was admitted that the tending of large 
power presses was the work of the pressman, it did not 
follow that the management of a small platen (flat bed) 
press was not a part of the work of the printer. More- 
over, although the Printers would have refused to allow a 
compositor to tend a press of any kind in a large office, 
they were not willing to make it a condition that mem- 
bers who were running one man offices should not look 



273] G. E. Barnett 11 

after the small press or presses in his office. Nor does it 
appear that at that time the pressmen were prepared to 
make such a contention, although the feeling that all 
forms of press work belonged to pressmen was growing- 
rapid ly. 

The question of the one man office did not assume im- 
portance, however, until the use of the label on printed 
matter had become extensive. At first the label was is- 
sued either by a pressmen's or a printers' union, and a 
shop might obtain the use of the label if the proprietor 
employed union compositors, even if the pressmen were 
non-unionists, or vice versa. Under these conditions the 
Pressmen could not prevent the use of the label by one 
man offices. In 1893 the International Typographical 
Union provided that in those cities where unions were 
chartered in more than one branch of the printing trade 
labels should be distributed by an Allied Printing Trades 
Council composed of representatives of all the unions. 
The Pressmen were thus given a voice in deciding 
whether an establishment should be permitted to use the 
label and since that time the conditions on which a one 
man office shall be given the use of the union label have 
been constantly debated. 

In some cities the Printers were out-voted in the Coun- 
cils by the other unions with the result that rules were 
enacted requiring small offices to employ pressmen if they 
desired to use the label. For example, the Cleveland Al- 
lied Printing Trades Council, in 1898, provided that a 
pressman must be employed in offices which had one cylin- 
der press and two " jobbers," (i. e. platen presses) or four 
"jobbers." This regulation made it necessary for all of- 
fices, except the very smallest, to employ a pressman. 

The Printers were opposed to such rule. Under date of 
October 15, 1897, an editorial in the Typographical Jour- 
nal denounced the attempts to withhold the label from 
small proprietors as "mischievous," and said, "To insist 
that a man must be in a position to employ pressmen and 



12 Economic Seminary [274 

stereotypers, in addition to compositors, is legislating in 
the interest of the house of Well-to-do and against the 
firm of Struggle-Hard." The attitude of the Printers is 
not difficult to understand. Their trade was the original 
one from which the trade of the pressman had been grad- 
ually differentiated, and they were reluctant to admit 
that the printer's trade did not include at least the 
simplest work of the pressman. In the small offices the 
composition of the matter was the only work which re- 
quired skill, and a printer might easily learn to serve as 
his own pressman. The Printers, therefore, while ad- 
mitting that a compositor should not serve as a pressman 
in offices large enough to afford employment to a work- 
man simply to look after the presses, were unwilling to 
admit that in the smallest offices the same workman 
might not be both compositor and pressman. 

On the other hand, the Pressmen were as unwilling to 
allow printers to do press work as to allow any other 
persons to encroach upon their trade. In 1899 the presi- 
dent of the Pressmen, in a conference with the officers of 
the Typographical Union, said "We do not permit men to 
set type and call their product work that should bear the 
label. We consider that when a compositor runs the 
press, such work is not the product of union labor any 
more than if a bricklayer on a building did the carpenter- 
ing work also." A year later, before the convention of 
the Typographical Union, he defined a one man office as 
"a place where one man sets the job, makes it ready, runs 
it off on the press, does the binding, collects the bills, per- 
forms the work of the solicitor, and cuts the prices." 

A compromise was effected and it was agreed in March, 
1901, that in cities of over 500,000 population, the Allied 
Trades Councils should be allowed to settle the matter, 
but that in cities of under 500,000 population, offices with 
not more than two platen presses were to be allowed the 
use of the label, provided the employer obeyed the rules 
of his particular union. Under this rule, pressmen pro- 



275] G. E. Bamett 13 

prietors of small offices were allowed to do composition 
as well as press work, but this was a merely nominal con- 
cession, for very few pressmen were able to run an office 
without the aid of a compositor. The controversy over 
the one man office, combined with other causes of disa- 
greement, led in 1901 to the breaking off of relations 
among the unions in the printing trade, and from 1901 to 
1901 the Allied Printing Trades Councils were dissolved 
in most places, the label being issued chiefly through the 
local unions of Printers, practically on such terms as 
those unions deemed advisable. 

In 1904 when a new agreement was entered into by the 
unions in the printing trade the rule concerning the is- 
sue of the label to the one man office was practically the 
same as that which had been adopted in 1901. In cities 
of more than 500,000 inhabitants, the Allied Councils 
were to settle the terms on which the labels should be 
given. In cities of less than 500,000 inhabitants it was 
agreed that a proprietor "who runs an office of not more 
than two platen presses and in the operation of such an 
office complies with the laws of his union shall be per- 
mitted to use the label, provided the entire work of the 
office be done by the proprietor thereof, and that when 
employment is given to any additional help members of 
affiliated unions must be employed." It was understood 
by the Printers at the time of the adoption of this rule 
that the proprietor of a one man office might comply with 
it by employing union press-feeders (unskilled employees) 
to operate his presses. In 1908, however, the Pressmen 
contested this interpretation of the section and requested 
that the rules should be modified in such a way as to give 
local unions of Pressmen the power to decide when a 
pressman should be employed. The Joint International 
Board in 1909 struck out the entire provision regulating 
the one-man shop, and Allied Trades Councils were given 
power to regulate the matter. 



14 Economic Seminary [276 

It is probable that in most large cities the proprietors 
of small offices will be required to hire a pressman if 
they wish the use of the label. The cost of production in 
such offices will be enhanced and the proprietor will be 
actually at a disadvantage in competition with larger of- 
fices since the Pressmen usually allow one pressman to 
tend three platen presses. The use of the label is very 
important to many small offices, and undoubtedly many 
of them will hire a pressman rather than give up their 
label custom. 

The existing agreement among the unions in the print- 
ing trade covers practically only the issue of the label, 
and the Printers may still countenance the small office to 
the extent of allowing their members to work in such of- 
fices whenever the proprietor needs help. They are not 
likely to take such a radical step as to refuse to allow a 
member to work in an office merely because the office can- 
not get the Allied Label. But the Printers are by no 
means so strongly in favor of the one man office as they 
formerly were. As the rules of the union have become 
more elaborate in recent years, the difficulty of enforcing 
them in small offices has become very great. This has 
been particularly true with reference to the regulation of 
working hours. Since the establishment in 1906 of the 
eight hour day by the Typographical Union, complaints 
have frequently been made that journeymen printers em- 
ployed in the larger offices conduct small offices of their 
own and work there after they have finished a day's work 
in their employers' offices. The union is opposed to this 
practise and has definitely declared it a violation of the 
eight hour rule. But the task of supervising the small of- 
fices is almost impossible of accomplishment. Even where 
the proprietor works only in his own office, the union can- 
not make sure that he works only eight hours. In 1908, in 
his address to the International Union, President Lynch 
said: "Unless there is radical reform in the method of 
supervision of the small shop with the label under which 



277 J L. G. McPherson 



15 



the proprietor will be compelled to confine his soliciting 
and mechanical execution together with all work neces- 
sary to the conduct of his business, to an eight-hour day, 
then there must be a reversal of our present attitude to- 
ward the small shop." 



THE SIZE OF EUROPEAN FREIGHT CARS 

By Logan G. McPherson 

An American who travels upon the railways of Europe 
need not be very observant to perceive that the locomo- 
tives and cars are far smaller than those which he has 
been accustomed to seeing in the United States. In Eng- 
land the freight cars are called "trucks," many of them 
holding four and the majority, eight tons. On the conti- 
nent they are termed "wagons." These were once no 
larger than the trucks of England but cars of ten, fifteen 
and twenty tons capacity are now in general use The 
average capacity of the German freight car is a trifle 
over fifteen tons. The capacity of the American freight 
cars gradually increased from ten and fifteen tons in the 
early part of the nineteenth century to twenty-five and 
thirty tons about 1890, when were introduced the large 
cars of the present type carrying forty and fifty tons 
each. J 

This difference between the freight cars of Europe 
and of the United States is no idle variation, no freak 
of economic development. In each case it is an indication 
of the traffic status, of the stage of industrial and com- 
mercial progress. As population has rapidly increased 
throughout the United States production has tended to 
become localized at places of respective economic ad- 
vantage, and the entire freedom of commercial exchange 
between all the different parts of the country have led 



16 



Economic Seminary [278 



to the conveyance of food stuffs from where soil and 
climate favor their growth to markets near and far, to 
the transportation of raw material from places of pro- 
duction over hundreds and even thousands of miles to 
places of manufacture, and of finished products likewise 
over hundreds and thousands of miles from the places 
of manufacture to commercial centers whence they are 
distributed over shorter distances to the retail dealers. 
The essential traffic of the United States is therefore of 
great quantities over long distances. The greater the 
quantity that can be carried in a car, and the greater the 
quantity that can be moved in a train the more econom- 
ical is the transportation. The greater the quantity of 
raw material that can be received by a mill or factory 
and the greater the quantity of finished product that 
can be turned out in a given time, the more economical ^ 
are the processes of manufacture. It does not cost as 
much with modern machinery to unload fifty tons from 
one car as twenty-five tons each from two cars and the 
expense of loading for distribution is also lower per unit 
for large quantities. This localization of production at 
places of economic advantage whence distribution is 
made over great distances through wide markets to a 
multitude of consumers has brought about production 
on a large scale. The appliances of the factories for re- 
ceiving and delivering shipments in large carloads have 
been increased and extended as the appliances of the rail- 
roads for moving shipments in large carloads have 
been increased and extended. The development of manu- 
facturing facilities and of transportation facilities has 
progressed hand in hand. The men of ability to conduct 
transportation and manufacture on a large scale have 
been but little impeded in the display of their enterprise . 
and energy. 

On the contrary the industrial and commercial frame- 
work of the countries of Europe was fairly well estab- 
lished before railroads were introduced. From early 



279] /.. (i. McPkerson, 17 

mediaeval times was inherited the self-sufficiency of the 
community. The settlements that arose in the shadow 
of fortress or monastery obtained their food from the 
dependents in the neighborhood; clothing, food, and 
utensils were made by local artisans. The feudal barons 
were at war, and as small states were formed there was 
enmity between one of these petty political entities and 
another that militated against the interchange of traffic. 
Even with the formation of larger states this enmity 
continued; heavy tolls were levied upon merchandise 
carried from one to another. Traffic that moved over 
considerable distances was mainly of luxuries in small 
volume for the use of the rich and the powerful. 
Between the great nations of modern Europe this 
rivalry still exists. The self sufficiency of the com- 
munity continued even in the case of the larger capitals 
until the nineteenth century was well advanced and in 
the smaller towns of the interior it endures today to a 
degree surprising to a citizen of the United States, in 
which this local self-sufficiency no longer exists even 
in the smallest settlement remote from the centers of 
commerce. 

It is easily understood, therefore, why the small freight 
cars or "wagons" still suffice for the traffic of the rail- 
roads of the continent of Europe. Raw material and 
manufactured product do not move in such vast volume 
as in the United States nor over such long distances. 
There is but little of that consignment from mill and 
factory to commercial center whence distribution is made 
throughout a tributary area. 

It is significant, however, that in progressive Germany 
the great manufacturers are chafing under restrictions 
to which the limited facilities of the railroads subject 
them. They want larger cars and heavier locomotives to 
handle their increasing and extending business, but the 
German Government, which owns the railroads, states 
that the introduction of larger equipment would compel 



18 Economic Seminary [280 

the rebuilding of track and structures of the railroads, 
and moreover the greater number of the manufacturing 
establishments in the country would also be obliged in 
great measure to rebuild their plants, as their present 
appliances are adjusted to the reception and delivery of 
the small cars, and that therefore the provision of large 
modern cars such as are used in the United States would 
be a discrimination in favor of the large and against the 
small shippers. The time is inevitably approaching, how- 
ever, when the government will be obliged to adjust its 
facilities to meet the demands of a larger and intensify- 
ing traffic. It is significant that one or two of the great 
manufacturing establishments having their own interior 
railroads for their exclusive use have equipped these 
railroads with powerful locomotives and forty and fifty 
ton cars. 

In France, Belgium and Italy the need for larger cars 
is not so pronounced, but even in France between the 
northern coal fields and ore beds of Belgium and Ger- 
many forty ton cars are now used. 

Up to thirty years ago traffic by rail between one and 
another of the countries of Europe was in inconsiderable 
volume. Each country had its own rules and regulations, 
its own forms of bill of lading and its own laws. All 
that a shipper in many cases could do was to consign 
merchandise to a national boundary where it was un- 
loaded and then loaded into a car of the adjoining 
country to be forwarded under unfamiliar restrictions. 
The different nations began at Berne in 1878 a series of 
conferences toward the amelioration of these conditions. 
These conferences resulted in the Berne Convention which 
has mitigated many of the obstacles in the way of inter- 
national rail traffic which is developing, and sooner or 
later will doubtless attain a growth that will compel the 
lines engaging in such traffic to increase their facilities. 

In England, where industry and commerce long ago 
attained a high development, the use of the small trucks 



281] F. T. Stockton 19 

has continued for a different reason. This country 
receives a large portion of its food stuffs and of the raw 
material of manufacture from other lands. It has become 
the custom for imported cargoes to be stored on the docks 
and in the warehouses at the ports whence distribution 
is made in small quantities as they are desired. The 
ports are so numerous that shipments from the factories 
go in comparatively small volume to one or the other for 
export toward the different points of the compass. As 
no place in England is more than ninety miles from the 
sea this is an economic development which may be sound 
but it places a great burden ur>.on the railroads. The 
commercial distribution in England has followed similar 
lines. No merchant nowadays keeps a large stock of 
wares, it being possible to replenish his stock by tele- 
graphing or telephoning to dock or factory whence is 
made immediate shipment, reaching him usually within 
twenty-four hours. This has forced the English rail- 
roads to great speed in delivery, to the rapid movement 
oftentimes of but three or four hundredweight to a par- 
ticular destination in a truck having a capacity of four 
tons or more. The railroad managers have striven vigor- 
ously to increase the carload and the trainload tonnage 
but without a great deal of success as the growing custom 
of retail shipment militates against their efforts. 



THE "CHECK-OFF SYSTEM" : A METHOD OF 
CLOSED SHOP ENFOKCEMENT 

By Frank T. Stockton 

Two general systems for the enforcement of the closed 
shop have been adopted by American trade unions. 
These are known respectively as the "card system" and 
the "check-off system." 



20 Economic Seminary [282 

Of the two, the card system is by far the more gener- 
ally used. Moreover, it has had a much longer history, 
certain phases of it being found in early trade societies 
at the beginning of the nineteenth century. It is also, 
in a way, a rather complex arrangement, involving the 
issue of working cards or permits, their inspection by cer- 
tain designated officials of the shop or local union, 
together with appeals to foreman or employer to dis- 
charge such persons as refuse to comply with the union 
membership requirements and shop rules. 

The check-off system, on the other hand, is confined 
practically to two industries, bituminous coal mining and 
window glass manufacture. Furthermore, it has come 
into use within comparatively recent years. It also dif- 
fers from the card system in that, from the union stand- 
point, its operation is exceedingly simple, requiring but 
slight supervision on the part of the organization em- 
ploying it. The whole system centers about the provision 
that the employer shall deduct union dues, fines and as- 
sessments from the wages of the men in the shop, factory 
or mine, and turn the sums collected over to the union 
having jurisdiction. 

In the bituminous coal fields of Ohio, Indiana, Illinois, 
Iowa, Texas, Montana, Wyoming and Arkansas, the 
United Mine Workers have for the most part succeeded 
in securing the incorporation of a check-off provision in 
their agreements with the mine operators. The latter 
agree that upon receipt of "proper individual or collec- 
tive order " they will deduct at their offices, the dues, fines 
and assessments which the local unions authorize. 

In some agreements, such as that made by District 11 
for 1906-1908, it is provided that the operators are to de- 
duct the dues, assessments and fines only of such miners 
or mine laborers as "give their consent in writing" or 
furnish "properly signed authority." This arrangement 
is favored by the operators inasmuch as they are thus 
protected from suits at law by those miners who may ob- 



283] F. T. Stockton 21 

ject to the withholding of part of their wages. As far as 
possible, however, the Mine Workers attempt to secure 
agreements which specify that the check-off system shall 
apply to all persons over whom the union claims jurisdic- 
tion, whether they furnish an individual order or not. In 
case of the adoption of such an agreement, the union 
guarantees to protect the operators from any legal pro- 
ceedings that may arise from the enforcement of the 
check-off. 

In some agreements of this character in the mining 
industry, certain restrictions are placed upon the collec- 
tion of fines imposed by a local union. Thus the Illinois 
state agreement for 1908-1910 specifies that "in case a 
fine is imposed, the propriety of which is questioned, the 
amount of such fine shall be withheld by the operator un- 
til the question has been taken up for adjustment and a 
decision has been reached." Other agreements provide 
that no fine shall be checked off unless it has been ordered 
by a two-thirds vote of the local union. Regulations of 
this sort are, of course, intended to protect the indi- 
vidual workman from the exercise of arbitrary power 
on the part of his associates. The agreement of Dis- 
trict 5 for 1906-1908 exempts the operators from making 
deductions for initiation fees "unless agreed upon locally 
between the operators and the miners." 

A maximum amount of "check-off" is provided for in 
some instances, subject to change by special local ar- 
rangements. The agreements usually provide that before 
the operator pays to the union the amount which it 
claims, he shall have the right to deduct from the wages 
of the several employees, such sums as are due him for 
smithing, rent, powder, tools, etc. He is also authorized 
to deduct what assessments there may be for accident 
and death benefits, together with the proportionate share 
due from each man for paying the check-weighman, 
whom the union provides to see that the coal is properly 
weighed and accredited. 



22 Economic Seminary [284 

After the operator has made all the deductions which 
he has been allowed to make by the agreement, he is then 
required to send to the union a statement "showing sepa- 
rately the amount of dues, assessments and fines col- 
lected" together with a list of those employees whose 
dues, etc., remain uncollected. The operator is also re- 
quired to furnish the union the means of ascertaining 
that the representations which he has made are correct. 
In this way, the union is able to discover whether the 
operator is collecting the proper amount from each 
miner and otherwise living up to the agreement. 



The early "rules for working" of the Window Glass 
Workers, Local Assembly 300, Knights of Labor, pro- 
vided merely that the manufacturers should deduct money 
from members when requested to do so by the chief pre- 
ceptor, i. e., the union representative in the factory. Cer- 
tainly as early as 1899, however, provision was made 
that the manufacturers were to deduct from the earn- 
ings "of all members" a certain per cent, of the amount 
earned to be paid to the unions as dues. As in the case 
of the Mine Workers, the local assembly was to be fur- 
nished with a statement of the names of those from 
whom such collections had been made. But while the 
arrangement, literally interpreted, applied only to those 
workmen who were members of the union, in reality it 
took in all the workers in an organized establishment 
inasmuch as no one was allowed to obtain employment 
therein unless he could exhibit a "clearance card" issued 
by the preceptor of the factory where he had last worked. 
To get such a card, a workman had to be a member in 
good standing. 

The rules for 1899 provided that no debt which a 
member might owe the manufacturer was to be allowed 
to prevent the deduction of dues. In the rules for later 
years, however, the union expressly allowed the em- 



285] F. T. Stockton 23 

ployer to deduct for "money advanced or otherwise" 
before deducting dues. In the rules for 1905 no mention 
is made of the matter. 

A further important part of the system was the pro- 
vision that in case any employer overpaid a glass worker 
or failed to deduct and forward the proper amount due 
the assembly he, in person, was to be "held liable for 
payment of the same." Upon his direct refusal to comply 
with this requirement, the scale was to be considered as 
having been broken, and members of the assembly w r ere 
allowed to cease work without having given the manu- 
facturer the usual seven days' notice. The "rules for the 
blast" ending June 30, 1901, required each member of 
Local Assembly 300 before going to work "to sign and 
place on file with each manufacturer" an agreement 
authorizing the latter to deduct union dues, etc., from 
his wages. Finally, the rules for 1905-1906 provided 
that all glass-workers accepting employment under the 
union scale, were to make such authorization, and were 
to waive all legal rights to recover the money thus taken 
from their earnings. At each factory the manager or his 
representative was required to acquaint all workmen 
with the above conditions before they entered his employ- 
ment. If they refused to give their assent to such 
methods of collecting union assessments and yet were 
allowed to work in the establishment, the firm or com- 
pany was to be held responsible for their dues, etc. The 
rules requiring the deductions have been continued to 
the present, though largely ineffective since 1905 on 
account of the shattered condition of Local Assembly 300. 

Similar methods for the operation of the check-off 
system have been adopted by other unions in the window 
glass industry, notably the Amalgamated Window Glass 
Workers of America and the Window Glass Cutters and 
Flatteners Association. Except in minor details, their 
rules resemble those described above. It is well, perhaps, 
to state that neither of these organizations, nor Local As- 



24 Economic Seminary [286 

sembly 300, have ever used the term "check-off" in con- 
nection with their practices in this regard. That term 
has been employed only by the United Mine Workers; 
but in practice, the devices employed have been similar. 

In a few other unions a check-off system has been 
adopted locally, where conditions make it desirable and 
it can be enforced. In Baltimore, for instance, in cer- 
tain shops, under the control of the United Garment 
Workers, where women constitute a large part of the 
workers, the union finds it difficult to hold these women 
in the organization. Consequently, one or two employers 
who desire to have a union shop in order to secure the 
use of the label, are willing to assist the union by deduct- 
ing dues and assessments at their offices before the em- 
ployees are paid off. 

The part which a check-off system of the character de- 
scribed above, plays in the enforcement of a closed shop 
is clearly very important. Union membership in good 
standing which is required under a strict interpretation 
of the closed shop rule, means that those eligible for 
membership shall be clear of outstanding dues, fines, 
fees and assessments. Under the card system the union 
must bring pressure on each individual workman to 
compel him to pay these charges. Under the operation 
of the check-off system, when a "collective continuous 
order" is given the employer by the union, each man's 
dues, are deducted regularly from his wages at the em- 
ployer's office. Consequently he always remains in good 
standing. Where this is the case with every man in the 
establishment, it means a strict closed shop, maintained 
by an almost automatic mechanism. All that is left for 
the union to do is to see that the employer collects and 
remits the proper amounts. 

The comparatively limited use of the check-off system 
is undoubtedly due to two causes, namely, the desire 
of unions to be self-reliant, and, secondly, the natural dis- 
inclination of the employers, under ordinary circum- 



287] A. 0. Mullen 25 

stances, to actively assist in any scheme which will 
compel their employees to become members of a labor 
organization. Where it has been adopted, however, it 
seems to have worked successfully and with probably less 
friction than in cases where the card system has been 
employed. 



CONVICT LABOR IN THE MARYLAND 
PENITENTIARY 

By A. O. Mullen 

It has always been the policy of the State of Maryland 
to require hard labor as a part of the penalty which must 
be paid by persons incarcerated in the State's prisons by 
mandate of the State's Courts. Different forms and 
methods have been used with varying results, but there 
has always been a consensus of opinions to the effect that 
the labor of the convicts ought to support themselves and 
the institution under whose charge they are. 

Before the Penitentiary was erected, the convicts on 
the Western Shore of Maryland, particularly in Baltimore 
City — Baltimore Town as it was then called — and in Bal- 
timore County, were employed upon the streets, the 
"basin" and the public roads. For the purpose of remov- 
ing convicts from such public work, the legislature passed 
a resolution in 1804 by which certain citizens, named in 
the resolution, were commissioned with the authority and 
responsibility of building a "penitentiary house." The 
prisoners at first confined in it were those who were con- 
victed in the Baltimore City and Baltimore County 
Courts. It was also provided before the Penitentiary 
was completed and declared open for the reception of con- 
victs, — which completion and opening took place in the 
Autumn of 1811, — that any person who had been con- 



26 Economic Seminary [288 

victed of a crime prior to the opening of the "penitentiary 
house," and sentenced to work on the streets, basin or 
public roads, and whose term had not yet expired at the 
said opening of the "penitentiary house" for the recep- 
tion of convicts, the same might, if he wished, make ap- 
plication to the Criminal Court of Baltimore and have his 
sentence changed so that he could serve the remainder of 
it in the "penitentiary house." 

Until after the Civil War the work done in the Mary- 
land Penitentiary, except in a few cases, was conducted 
on what is known as the "State account" plan. That is, 
the officials, acting for the State, supplied the necessary 
machinery and raw materials, had the convicts work them 
up into manufactured products, and then sold these as 
any other manufacturer would do. In the early period 
of the prison's history, the weaving of woolen and cotton 
goods was the principal industry. The materials were 
purchased in the shape of wool and raw cotton, and dyed, 
carded, spun, and woven in the prison. The goods thus 
manufactured were distributed mainly through the local 
markets, and what could not be thus disposed of were 
sold through commission houses in New Orleans, New 
York, Philadelphia, and Cincinnati. From the beginning 
until 1831 this industry proved profitable, and large 
surplus earnings were reported, particularly after 1816; 
large expenditures were also made from income for dye- 
ing-vats, machinery, etc. However, the earnings appear 
larger than they really were, since from 1816 to 1831 the 
legislature appropriated f 108,000.00 to pay the salaries 
of the penitentiary officials. If this sum is deducted from 
the earnings of the period, the surplus for those fifteen 
years is almost completely wiped out. The officials in 
charge at the time, however, seemed to be highly pleased 
with the success of their operations. 

From 1831 until 1871, that is for a period of forty 
years, the industrial operations of the prison were con- 
ducted at a heavy loss. Financial depression and indus- 



289] A. 0. Mullen 27 

trial stagnation at times cut off the sale of the commodi- 
ties produced in the institution, and the introduction of 
power looms made weaving on hand looms so unprofitable 
that it was impossible to make sufficient returns to justify 
a continuance of the manufactures. A difference of one 
cent per yard in the goods made, affected the profits or 
losses of the prison about five thousand dollars. Other 
industries were conducted in the prison such as cordwain- 
ing, comb-making, and smithing; but as they required 
more highly skilled labor than could ordinarily be at- 
tained by the convicts, these industries could only be 
developed to a minor degree as compared with weaving. 

In 1832 a contractor proposed to the penitentiary of- 
ficials to contract for the labor of a number of prisoners 
to be used in the hammering of granite. The proposition 
was looked upon rather favorably. First, it would pro- 
duce a certain and fixed revenue. Second, the capital of 
the institution would not become tied up in surplus 
product which must be carried as stock on hand until a 
market could be found. Third, the risk of the rise and 
fall of the markets would be eliminated, a condition that 
must always be present when goods are made on the 
"state account" plan. As a law had been passed in 1828 
by the Legislature requiring the Board of Directors to 
pay the expenses of the institution out of its net profits, 
and it was necessary to find some way by which the net 
profits could be made large enough to meet the require- 
ments of the act, the officials acceded to the proposition 
and entered into a contract to supply at least forty con- 
victs at fifty cents a day each to be employed in hammer- 
ing granite. The contractors had hardly begun opera- 
tions when the granite workers on the outside began to 
oppose the system, and three years afterwards, the con- 
tract was withdrawn. The information at hand renders 
it impossible to say whether the discontinuance of the 
contract was due to this agitation or to other causes ; but 
as there was an investigation about this time by the Legis- 



28 Economic Seminary [290 

lature into the subject of convict labor it is fair to as- 
sume that labor opposition had more or less to do with it. 

As a result of the agitation the State Legislature 
passed a bill compelling the prison authorities to sell 
their products at wholesale and in no case to sell a lot 
of less than $50,000 worth to one customer. This require- 
ment worked a serious loss to the institution and the 
Board of Directors were compelled to ask the Legislature 
for an appropriation of $30,000.00 the year after the act 
was passed. The requirement of the act forced the dis- 
continuance of a considerable portion of the carding and 
spinning, entirely eliminated the weaving of carpets for 
families, and stopped the making of shoes for farmers 
and planters, and the sawing of stone for stone cutters. 

When the weaving of common plaids and other cotton 
goods became so unprofitable as to threaten the discontin- 
uation of production altogether, the officials introduced 
the weaving of silks and fancy vestings. This industry 
was not, however, maintained long, and one thing after 
another was tried with varying degrees of success. Even 
cordwaining was finally abandoned, because, as was 
maintained by the authorities, it was impossible to manu- 
facture boots and shoes in competition with those manu- 
factured by the Eastern establishments. 

The Board of Directors became convinced in 1855 that 
the contract plan was safest from a financial standpoint, 
and they once more tried the experiment of contracting 
with manufacturers to furnish specified numbers of con- 
victs for the manufacture of certain goods. From that 
time the contract system grew in favor until 1804 when 
it supplanted the former method entirely. Contract 
convict labor has been defended by almost all prison offi- 
cials and contractors who are engaged in it, at times 
ardently supported and at others violently attacked by 
social reformers, and almost always opposed by the labor 
interests. The only legislation adverse to the employment 
of convicts in Maryland since the Civil War was a bill 



I'll 1 J 



A. 0. Mullen 



29 



passed in 1870 by the General Assembly which forbade 
the manufacture of tin cans in the prison. 

The following table is the best exhibition of the finan- 
cial results in the Maryland Penitentiary that is at hand. 
Prior to 1888 the figures need some correction if used for 
comparative purposes. As has already been said, from 
1816 to 1828, |108,000.00 was appropriated by the Legis- 
lature to pay the salaries of the officers. From 1828 to 

1887 varying amounts were appropriated from time to 
time to assist in paying the officers' salaries, finally in 
1872 becoming an annual appropriation of $8000.00. In 

1888 an appropriation of $6000.00 was made to provide 
for the deficit of that year, and in 1889 one of $8000.00 
for the same purpose. Since 1890 the figures in the table 
are the exact amounts paid over to the State Treasurer 
after every item of expense has been deducted. The figures 
therefore from 1888 to 1909 are a correct exhibit of the 
net profits and losses of the Maryland Penitentiary for 
those vears. 



Year 
1816. 
1817. 
1818. 
1819. 
1820. 
1821. 
1822. 
1823. 
1824. 
1825. 
1826. 
1827. 
1828. 
1829. 
1830. 
1831. 
1832. 
1833. 
1834. 
1835. 
1836. 
1837. 
1838. 



Earnings 

over 
Expenses 
$ 5,956 10 



3,009 
332 
266 

7,654 

7,888 

1,123 

1,047 
12,347 
12,843 
15,258 97 
11,804 16 
19,553 89 

2,338 06 

"881 04 



42 
43 
00 
44 
06 
16 
30 
21 
28 



10,622 21 



Expenses Earnings Expenses 

over over over 

Earnings Year Expenses Earnings 

1839 3,722 36 

1840 3,239 26 

1841 6,493 13 

1842 12,315 93 

1843 483 66 

1844.... 9,536 84 

1845 1,220 92 

1846 7,468 38 

1847 7,499 81 

1848 12,947 91 

1849 7,054 46 

1850 7,765 39 

1851 9,302 78 

1852 7,473 85 

........ 1853.... 2,999 11 

1854 8,516 05 

$ 981 22 1855 6,149 86 

1856 5,218 30 

2,780 38 1857 26,189 92 

618 36 1858 13,449 17 

1859 11,362 91 

149 27 1860 8,613 52 

26,046 00 1861 8,907 87 



30 



Economic Seminary 



[292 



Year 

1862. 
1863. 
1864. 
1865. 
1866. 
1867. 
1868. 
1869. 
1870. 
1871. 
1872. 
1873. 
1874. 
1875. 
1876. 
1877. 
1878. 
1879. 
1880. 
1881. 
1882. 
1883. 
1884. 
1885. 



Earnings 
over 

Expenses 



3,079 

638 

49 

1,417 

• 425 

998 

6,356 

13,001 

7,326 

1,993 04 

1,667 43 

4,585 81 

7,515 15 

3,536 48 



78 
42 
94 
96 
37 

on 

3fi 
85 

43 



Expenses 

over 

Earnings 

16,151 80 

$10,658 16 

4,022 92 

9,979 93 

20,627*69 
16,346 77 
25,762 67 
23,877 32 
20,887 02 



Year 

1886. 
1887. 
1888. 
1889. 
1890. 
1891. 
1892. 
1893. 
1894. 
1895. 
1896. 
1897. 
1898. 
1899. 
1900. 
1901. 
1902. 
1903. 
1904. 
1905. 
1906. 
1907. 
1908. 
1909. 



Earnings Expenses 

over over 

Expenses Earnings 

4,347 67 

661 76 

5,963 13 

8,719 59 

1,991 64 

3,022 35 

3,696 87 

6,753 21 

11,345 24 

15,216 04 

17,724 45 

27,871 84 

29,180 71 

35,195 34 

33,902 06 

29,199 00 

19,537 05 

23,078 67 

27,570 69 

36,492 07 

44,001 14 

40,049 61 

37,156 84 

44,124 36 



THE BRICKLAYERS IN THE SHORTER-HAY 
MOVEMENT, 1865-75 

By E. T. Cheetham 



The National Union of Bricklayers was organized in 
Philadelphia, October 16, 1865, by a meeting of delegates 
of the Philadelphia and Baltimore Associations of Brick- 
layers. At that time bricklayers were working ten hours 
a day, and the policy of the Union included, from the 
first, the shortening of the work-day. The plan compre- 
hended, first, agitation for the enactment of state and 
national eight-hour laws, and, second, efforts by the brick- 
layers' unions to reduce the hours of bricklayers. 



293] E. T. Cheetham 31 

The movement was not confined to the Bricklayers. 
The National Machinists and Blacksmiths' Union had 
resolved, at the convention of 1866, to work only eight 
hours. The Molders had declared a like purpose the same 
year. The Ship-carpenters and Caulkers had also deter- 
mined that after March 1, 1866, they would work only 
eight hours a day; and by 1868 the Plasterers of New 
York City and Brooklyn were working eight hours. The 
Bricklayers assisted other trades in their attempts to 
shorten working hours by moral and material aid, and 
by entering into confederations for combined effort. 

At the Baltimore Convention of the Bricklayers in 
January, 1866, a committee was selected to draft resolu- 
tions on the eight-hour question. This committee recom- 
mended the shortening of hours from 10 to 8, stating that 
this question was paramount to all others. The reduc- 
tion of hours was urged on the ground that it would 
greatly conduce to the intellectual, moral, and physical 
well being of the craft. The committee recommended 
also that the union should press upon the national, state 
and municipal authorities the justice of the claim, and 
urged that a demand be made on the various legislatures 
for the enactment of laws making eight hours a legal 
day's work. The faith of the committee in the efficiency 
of this means of attaining the shorter work-day was 
shared by the convention and, indeed, by the members 
of other crafts at this time. This agitation resulted in 
the passage of several state eight-hour laws in 1867 and 
a federal eight-hour law in 1868. These laws, however, 
were ambiguous and without proper provisions for en- 
forcement. In 1869 the Bricklayers' convention adopted 
resolutions calling on Congress to pass a law explanatory 
of the provisions of the eight-hour law passed the pre- 
vious year, as it was differently interpreted by the various 
departments of the federal government. 

The president of the Bricklayers in his report to the 
convention of 1870 went into the eight-hour question at 



32 Economic Seminary [294 

length. He stated that the men engaged on government 
work were being deprived of the benefits of the eight-hour 
law, being obliged to work ten instead of eight hours, 
and had to resort to strikes to secure the enjoyment of 
its provisions. The secretary, in his report to the con- 
vention of 1871, stated his belief that some general plan 
should be adopted for the attainment of the eight-hour 
day, and that the campaign should begin with establish- 
ing the shorter work-day on public work — national, state 
and municipal. 

The convention of 1872 adopted a motion to petition 
the New York Legislature to amend the eight-hour law 
of the state so as to make it enforcible. A committee 
visited Albany and presented a memorial to the Legis- 
ture. The Committee on Trades and Manufactures, to 
which the memorial was referred, reported adversely on 
the ground that the law already in force was "good 
enough." At the convention of 1874 resolutions Were 
introduced by the Washington, D. C, Union and adopted 
by the convention demanding the removal of A. B. Mul- 
lett, United States Supervising Architect, because he 
had recommended in his report to Congress the repeal 
of the national eight-hour law. A Committee was ap- 
pointed to visit the President of the United States and 
give him a copy of the resolutions. Copies were pre- 
sented also to members of Congress and a number of 
Congressmen promised to use their influence against the 
repeal. 

By this time the Bricklayers began to understand that 
if they were to get the shorter day it would not be 
through the enactment of laws. The result was an in- 
creasing number of attempts to secure from private em- 
ployers the concession of the shorter work-day. The fol- 
lowing table shows the strikes by bricklayers' unions for 
the shorter day during the decade of 1865-75 : 



295] E. T. Chcctham 33 

Year. Unions Involved. Purpose of Strike. Result. 

1865 

1866 

] 867 Washington, D. C 

1868 New York Unions 2, 4,12.. Eight hours lost. 

St. Louis Eight hours 

1869 Philadelphia Shorter Saturday 

1870 Troy, N. Y Shorter Saturday won. 

1871 

1872 No. 1, Canada Shorter day lost. 

1873 New York City Unions. .Eight hours won. 

Williamsburg, N. Y Eight hours won. 

Toronto, Canada Nine hours.. .Compromised on 

Shorter Saturday. 

1874 Washington, D. C Reduction of hours abandoned. 

Of the strikes of this decade, the New York strike of 
1868 was the most important as it was the most expen- 
sive and the most disastrous. Local Union, No. 4, of New 
York, petitioned the convention of 1868 that it be given 
assistance in case of a strike and expressed the hope that 
the other unions of New York City and vicinity would co- 
operate. In the strike that followed, local unions No. 2 
and 12 of New York City joined No. 4. The national sec- 
retary called for a levy of $2.00 on each member of the 
organization, but many unions failed to respond. Circu- 
lars were issued and sent to the various unions asking 
bricklayers to stay away from New York City. Through 
lack of experience in conducting large strikes the Brick- 
layers were routed and all but went to pieces. Four 
years later, however, they renewed the struggle, taking 
care first to bring into the union as nearly as possible 
every bricklayer in New York City. On May 20, 1873, 
Unions Nos. 2, 4, 12 went on strike for eight hours. The 
strike lasted for only one day and the men won the 
shorter day on their own terms. 

Throughout the period from 1867 to 1874, there was 
recurrent agitation for the passage of a rule by the 
National Union forbidding the local unions to work more 
than eight hours. The St. Louis Union introduced a peti- 
tion at the convention of 1867 for a national rule on the 
subject, and the unions of New York City were especially 



34 Economic Seminary [296 

insistent for such a rule at the 1868 convention. The con- 
vention of 1868 decided "not to press the eight hour ques- 
tion at this time although the members personally favor 
it," but in 1869 the Convention adopted a resolution 
"legalizing eight hours as a day's work," and agreeing to 
support any union, in any state, that passed the eight 
hour rule, provided the union complied with the laws of 
the national body. In 1874, however, in consequence of 
the panic of the preceding year, building was at a stand- 
still and the Bricklayers adopted a resolution that the 
eight hour question "be referred to the local unions with- 
out the influence of the national union." This became the 
settled policy of the Bricklayers for a number of years 
following. 



RESTRICTION OF ADMISSION TO MEMBERSHIP 

IN THE GLASS BOTTLE BLOWERS' 

ASSOCIATION 

By F. E. Wolfe 

Since its organization in 1888 the Glass Bottle Blow- 
ers' Association has practised a policy of severe limita- 
tion with reference to the admission of members. This 
policy is based on a desire to minimize competition by so 
limiting admission to membership as to secure as nearly 
as possible equilibrium between supply and demand of 
labor at the wage rates fixed by the Association. Denial 
of admission to membership has meant in recent years 
practically exclusion from the trade. In 1898 in New 
Jersey alone there were 1,400 non-union blowers employed 
in non-union shops, while in 1909 there were only about 
600 non-union blowers in the United States. In other 
words about 95 per cent, of the trade is under the con- 
trol of the organized workers. Hence the Association is 
in a position to dictate terms of admission. 



297] F. E. Wolfe 35 

Restrictions have been placed on the admission of the 
following classes of persons: — (1) apprentices; (2) 
foreigners; (3) stockholders; (4) expelled workmen. 
After dealing with these classes in order, the effect of 
the introduction of labor-saving machinery on the policy 
of admission will be considered. 

The Association requires as a necessary qualification 
for admission, the serving of an apprenticeship for a 
period of not more than five years at glass-blowing in a 
union shop in the United States or in Canada. The time 
served is subject to local variation. The requirement 
that an apprenticeship be served in a union shop has been 
consistently enforced, and applicants with non-union ap- 
prentice records have invariably been excluded unless a 
more immediate interest of the Association would be sub- 
served by their admission. Since 1893 the place of an ap- 
prentice, who leaves a firm for any cause, cannot be 
filled. In case an apprentice dies during his first year, if 
his place is filled at all, it must be done during that year. 

In 1906-1907, to meet an extra demand for workers the 
Association was forced to borrow apprentices from the 
next season's quota. Otherwise the manufacturers would 
have been furnished with an unanswerable argument in 
favor of more apprentices. The number of borrowed ap- 
prentices decreased by that much the number which could 
be taken on the next season. By the summer of 1908 the 
demand for workmen had so fallen off that instead of a 
loan of apprentices from the next season, the Association 
felt justified in decreasing by half the existing ratio of 
apprentices. On two occasions, by agreement with the 
manufacturers the taking of new apprentices has been en- 
tirely prohibited for a year. This rule was first enforced 
during the blast of 1894-95, and again in 1909-10. 

The Association has always seriously opposed the im- 
migration of foreign glassworkers into this country. In 
1892 there was adopted a rule, which continues in force, 
that any member who encourages or assists in any man- 



36 Economic Seminary [298 

ner either directly or indirectly any foreign glass blower 
to come to this country shall be fined f 100 and suspended 
from work for one year. 

Exclusion of foreigners from membership has been ac- 
complished by requiring extra high initiation fees from 
such workers ; and since 1892, by leaving the admission of 
all foreigners to the discretion of the Executive Board, 
who may admit them when it is deemed necessary. This 
wide discretionary power has tended to keep out all 
foreigners. That foreigners have been excluded because 
they were foreigners is indicated by a provision adopted 
for the blast of 1907-08 to the effect that no foreign blower 
should be admitted unless it should be deemed absolutely 
necessary in order to keep "turn-mould places" filled. At 
that time some manufacturers were in need of turn-mould- 
ers, and these could only be supplied from foreign coun- 
tries; such as were needed were admitted on the condi- 
tion that they should remain in the turn-mould depart- 
ment three years. This last provision was adopted for 
the purpose of preventing an inflow of foreigners into the 
other branches of the trade. With the exceptions just 
noted, a foreigner has not been admitted for five years, 
and for the last three years a foreigner has not made ap- 
plication for admission. 

From 1888 to 1895 members who held stock or were 
partners in any glass blowing concern and continued to 
work as blowers, were permitted to remain in the As- 
sociation. It was found that members financially inter- 
ested in glass firms usually became negligent of the in- 
terests of the Association. Accordingly from 1895 until 
1900 stockholders were required in all cases to take out 
withdrawal cards. Workmen with withdrawal cards 
might either work at the trade or not, as they chose. 
To take the places vacated by the withdrawing stock- 
holders who did not continue to work at the trade, the 
admission of additional blowers was required. Further- 
more, since those workmen with withdrawal cards who 



209] F. E. Wolfe 37 

were not working at the trade still had the right to work 
and to be readmitted, it was feared that a surplus of 
members might result. To stop this potential influx of 
members, since 1900 all stockholders have been required 
to be members, and no withdrawal cards may be issued 
to anyone working at the trade. 

All members charged with offenses are guaranteed the 
right to appear in person or by counsel to answer the 
charges, and in case of dissatisfaction with decisions 
have the privilege of an appeal finally to the annual con- 
vention. For the readmission of expelled workmen the 
consent of the expelling local is required, and if the ex- 
pulsion is for offenses against the Association at large 
the workmen may only be readmitted at the discretion of 
the Executive Board. 

The numerical strength of organized glass bottle 
blowers, when compared with that of the non-unionists 
is strikingly favorable to the former. In 1902 in Indiana 
alone there were 940 non-union blowers, in 1904, about 
600. In 1907 the total number of non-union blowers in 
the whole United States was 1,370, in 1908, 910, in 1909, 
only 600. The representatives of the union in the 1909 
conference with the manufacturers stated : — "As for non- 
unionism, that evil has steadily decreased and is a matter 
of secondary consideration when taken as a competitive 
force." The Association however continues its efforts to 
unionize the few remaining non-union shops. This is 
desired in order to deprive manufacturers of a plea for 
a lower scale of wages. Practically the only way by which 
non-unionists may become members of the Association 
is through the unionizing of a non-union shop. 

In 1898-99 in order to enable certain manufacturers to 
compete with machines, and to prevent about 400 of its 
members from being thrown upon the relief fund of the 
union through displacement by non-unionists, a reduction 
of wages was agreed to. In 1903 the Owens Automatic 
machine was first made use of in the manufacture of beer 



38 Economic Seminary [300 

and mineral bottles. The Association had at that time 
nearly 1,600 members employed in this branch of the 
trade. To provide against their displacement and com- 
petition in the other branches of the trade, a reduction of 
hours and a division of work were recommended. In 
1909 the three-shift system, as a means of meeting ma- 
chine competition and of providing employment for the 
members, was endorsed; and its adoption, wherever pos- 
sible, was recommended. The use of improved machinery 
has in this way forced the glass bottle blowers to the ex- 
tremity of devising means to secure employment for a 
surplus of members. Under such conditions admission 
into membership has become practically impossible, ex- 
cept in cases of unionization of non-union shops, as noted 
above. 



MACHINERY IN THE WINDOW GLASS TRADE 
By A. B. Morton 

The manufacture of window glass until recently was 
carried on entirely by the old method of blowing the glass 
into cylinders, flattening it in ovens, and finally cutting 
it into marketable sizes. These processes were performed 
by four sets of workmen known as the gatherers, the 
blowers, the flatteners, and the cutters. There were also 
subsidiary groups of workers such as the potmakers, 
teasers, snappers, and layer-outs, but they were not large 
enough to be important. 

From 1880 workmen in the four chief window glass 
trades were organized as Local Assembly, No. 300 of the 
Knights of Labor. There were attempts at separation by 
one or more of these trades at different times but the 
solidarity of the Union was not seriously affected until 
recently. For many years L. A. 300 controlled almost 



301] A. B. Morton 39 

absolutely the supply of workmen. The rules regulating 
admission to the trade were of the most stringent char- 
acter. Foreigners were practically excluded, and appren- 
ticeship rules prevented any one but sons and brothers of 
members from learning the trade. The same spirit of 
restriction also pervaded the regulations concerning the 
length of the working day and season, the amount of 
output, and the number of helpers. 

The great advantages which the window glass workers 
enjoyed in wages over the workmen in other glass trades 
may be seen from the following table taken from the 
report of the Commissioner of Labor in 1904: 



Trades. Hours of Labor Wages 

per week. per hour. 

Green Glass Blowers 51 . 00 $ . 6078 

Flint Glass Blowers 50.12 . 5768 

Flint Glass Gaffers 49.41 .5790 

Flint Glass Gathers 49.48 .3201 

Window Glass Blowers 36.78 1.1740 

Window Glass Gatherers 36 . 67 .8529 

Window Glass Flatteners 68 . 00 . 5868 

Window Glass Cutters 58.00 . 4832 



The introduction of machinery into the trade was re- 
tarded by certain peculiar conditions : 

(1) The demand for window glass, which is dependent 
largely upon the amount of construction work going for- 
ward, varies widely from year to year. There was no 
great potential demand which might be evoked at lower 
prices. As a consequence, the manufacturers had come 
to dread above all things the accumulation of a surplus 
stock. The control of production in such a way as to 
prevent too great expansion in building new plants in 
prosperous years and thus causing ruinous competition 
in lean years was the chief concern of the manufacturers. 

(2) Although the American producers had to compete 
against a low foreign labor cost, this disadvantage was 



40 Economic Seminary - [302 

more than offset by the high protective rates which the 
government offered to the industry. Eates of more than 
50% compensated the home producer. Even the introduc- 
tion of machinery offered no reasonable prospect of se- 
curing a foreign market. 

(3) The cost of experimentation with machinery was 
very great. In the few attempts which had been made in 
this direction, the machines were very intricate and costly 
and the possibility of dispensing with skilled workers 
seemed small. 

(4) The union, which, as has been said, controlled the 
labor supply, was unwilling to work the experimental 
machines, except on the most burdensome terms. 

On the other hand, from about 1895 certain influences 
made directly for the introduction of machinery : 

(1) There was, first of all, a growing lack of cohesion 
among the manufacturers. Their attempts to form asso- 
ciations for the purpose of maintaining prices usually 
resulted in failure. The members of these associations 
offered secret discounts in violation of the rules. 

(2) The employers and union found it increasingly 
difficult to agree on terms of employment. The factories 
in some years did not open at their usual time because 
the two parties could not agree upon a wage scale. 

(3) No efficient discipline was exercised by the union 
over its members, who frequently refused to abide by the 
agreements made by their officers, and even made private 
agreements with employers. The dissensions among the 
workers led to the formation of rival unions. Many mem- 
bers withdrew from L. A. 300 to form the Window Glass 
Workers of America, later known as the Amalgamated 
Window Glass Workers, and as the National Association 
of Window Glass Workers. The cutters and flatteners 
seceded to form the Window Glass Cutters and Flat- 
teners Association. The rival organizations were willing 
to sacrifice many of their regulations in order to gain 
the favor of the principal manufacturers. 



303] F. E. Wolfe 41 

(4) In the plate glass industry labor-saving devices 
had greatly reduced the cost of production, and plate 
glass was replacing ordinary window glass for many 
uses. The effect of this invasion was to turn the atten- 
tion of window glass manufacturers to cheaper methods 
of production. 

The earliest inventions to attract the attention of the 
union were certain labor-saving devices in the operation 
of flattening, and in 1892 the following rule in relation to 
these devices was adopted by L. A. 300 : "Any manufac- 
turer introducing into his flattening house new inven- 
tions, supposed improvements, shall, so long as said in- 
vention or improvement continues to be an experiment or 
until it shall have been demonstrated that it will not be 
a loss to the workingmen, pay a guarantee to all work- 
men whose work is or may be affected by said machine or 
invention. Said guarantee to be arranged between the 
Manager of said Works and the President and Wage Com- 
mittee of L. A. No. 300. And the flattener on said oven 
must be provided with a Layer-out. This is to apply to 
all experimental machines that may be introduced. 
Where the Lubber improvement is introduced, the flat- 
tener shall be provided with a layer-out or shoveboy." 

This rule was liberal enough, but the unwillingness of 
the members as individuals to make use of any but the 
old methods of workmanship made it impracticable for 
the employers to introduce the new devices. It was not 
until 1899, however, that L. A. 300, frightened by the ex- 
tent of machine experimentation, developed fully its 
hostile position. A rule then adopted declared: "No 
manufacturer or company will be allowed to operate any 
invention or machine for the purpose of making window 
glass at any time where the scale of the L. A. No. 300 is 
in force. In case this is done the wage scale of L. A. No. 
300, K. of L. shall be cancelled and members will immedi- 
ately cease work." 



42 Economic Seminary [304 

Although the rival union, the Amalgamated Window 
Glass Workers' Association of America, was bitterly 
hostile to L. A. 300, it was as one with that organization 
in its opposition to the introduction of machinery. In 
1904 it adopted the following rule: "No member of this 
Association will be allowed to assist or try to operate 
any Iron Man, machine or invention for the purpose of 
making window glass except it be under the direction of 
the Executive Board or with consent of same. For viola- 
tion of above, a member or members shall be fined, sus- 
pended, or expelled from the Association, as the Execu- 
tive Board may decide." 

The actual introduction of a window glass machine did 
not take place until the appearance of the model of the 
American Window Glass Company. After much experi- 
mentation, the machine was brought into practical use in 
1903. Its success was demonstrated by its speedy intro- 
duction into many of the factories of this large concern. 
The machine has displaced the skilled labor of the blower 
and gatherer, but cutters and flatteners were still required. 
The unions of cutters and flatteners allowed their mem- 
bers to work with the machines. The jealousy which the 
rival unions felt toward one another incited them to ac- 
cept terms which would not have been possible under the 
former amalgamated organization. 

The machine factories could turn out excellent glass 
at a very low cost of production, and the hand plants 
were unable to compete with them. Wage agreements 
were made by the unions of the following character: "It 
is understood and hereby agreed, that if any window 
glass blowing machine or machines, is operated to a suffi- 
cient extent to affect the market by reason of their cost 
of production being lower than this scale, at which time 
and under such conditions this scale shall be subject to 
revision upon the demand of the manufacturer so affected 
by such machine or machines. The same conditions to 
be determined by the Wage Committee." L. A. No. 300 



305] M. E. Hourivich 43 

adopted a sliding scale in 1905, which provided for the 
increase or decrease of wages so as to allow these hand 
producers to adjust themselves to the condition of the 
market. President Burns also removed the restriction 
on the output so that the members would be unhampered 
in showing their highest capacity against the machines. 
It is estimated by a competent authority that in 1909 
there are 160 machines in operation, capable of produc- 
ing about 3,000,000 boxes out of an annual consumption 
of 6,500,000 boxes. 

With the growing importance of the American Window 
Glass Company through its use of machinery the in- 
dustry has for five years suffered from cut-throat compe- 
tition. About twenty per cent, of the hand plants in 
1909 were in the hands of receivers. The unions are very 
weak, and have been forced to give up many of the favor- 
able conditions which they formerly enjoyed. The piece- 
rates of blowers and gatherers have been reduced to about 
twenty-five per cent, of what they were in order to make 
it possible for the hand plants to continue their opera- 
tions. The cutters and flatteners have suffered less but 
their wages have been reduced fif <*y per cent. 



THE EARLY CIGAR MAKERS' UNION OF 
BALTIMORE, 1856-1863 

By M. H. Hourwich 

The first cigarmakers' union in Baltimore was organ- 
ized in 1851, but the earliest minutes of the proceedings 
that have been preserved date back only to 1856. The 
union at that time was known under the name, "Cigar- 
makers' Society of Maryland." The Baltimore union was 
probably the first cigarmakers' union in this country. 
Baltimore was at the time the leading centre in the 



44 Economic Seminary [306 

trade and the Baltimore union occupied a conspicuous 
position in the development of trade unionism among 
the cigarmakers in the United States. As local unions 
were organized in other cities, they requested the Balti- 
more union to send them its by-laws and constitution, 
and the Baltimore union maintained an irregular cor- 
respondence with the other unions. 

Although the present national union was not organized 
until 1864, the necessity of a closer combination for the 
better protection of the trade was felt much earlier by 
the local unions in different cities. It has been supposed 
that the first national organization among the cigar- 
makers was formed in 1864. Certain passages in the 
minutes of the Baltimore Society make it probable that 
some form of inter-local organization existed some years 
earlier. A national convention was held in New York on 
July 2, 1856, and a delegate was sent from Baltimore. 
Another convention was called for July, 1857, and three 
delegates were to be sent from Baltimore, but the con- 
vention does not appear to have been held. In 1863 the 
Baltimore union had a conference with the Philadelphia 
Cigarmakers' Union on the subject of the relations of 
the two unions. A joint committee was formed, and it 
was agreed to admit members of one local union to 
membership in the other by card and on payment of half 
the regular initiation fee. A resolution was also adopted 
by this committee recommending all associations of 
cigarmakers in the United States to communicate with 
these two unions. Evidently the purpose in view was 
the formation of a national union, which would include 
all local unions and exercise control over them. This 
was effected in 1864. 

At this period the influx of Germans was large, and 
many of them went into the cigarmaking trade. Ger- 
mans constituted a large part of the membership of the 
Baltimore union. Since most of them were not familiar 
with the English language, the proceedings of the meet- 



307] M. H. Hounvich 45 

ings were usually recorded in both languages, and the 
meetings were advertised in English and German news- 
papers. The constant need of a German interpreter 
at the meetings entailed many inconveniences, and in 
1856 it was decided to hold separate meetings for Ger- 
mans and Americans, which it was believed would in- 
crease the interest of the members in the proceedings 
and their devotion to the common cause. In order to 
preserve the unity of the organization, an executive com- 
mittee was formed, of which seven members were Amer- 
icans and six, Germans. 

One of the first important questions with which the 
union concerned itself was the regulation of the bill of 
prices. The piece rate was the only system in vogue at 
that time in the trade. A certain price was paid for 
each 1000 cigars of a certain kind. The union did not at 
first draw up a bill of prices, but contented itself with 
enforcing the fairly well established list already recog- 
nized. It did, at a very early time, however, resist an 
attempted encroachment on the standard rate. In 1856 
the employers wished to resume the old plan of making 
the journeymen pay for their own stripping, and the 
union passed a resolution forbidding the members to 
work for any employer unless the stripping was paid 
for extra. The union also refused to allow its members 
to do the casing of the leaf, unless paid for extra. A 
regular bill of prices was established in 1858. In 1862 
the union in order to provide a rate for certain sizes 
and shapes of cigars not included in the bill of prices 
provided that no cigars should be made for less than 
$6.00 per 1000, and that the price of any extra work 
should be regulated by the workers. 

A three years' apprenticeship was required for ad- 
mission, and in case any one was admitted by mistake 
before he had served the regular term, he was expelled 
from membership and his dues were refunded. One of 
the by-laws also provided for a limitation on the number 



46 Economic Seminary [308 

of apprentices. The ratio was one apprentice to five 
journeymen, two to ten, and one to every additional ten. 
No member of the union was allowed to work with an 
apprentice unless the apprentice was getting the regular 
price. 

The union from the first days of its existence at- 
tempted as far as it could to enforce the closed shop. In 
1856 it was decided that no member of the union was to 
work with non-unionists. No member was allowed to 
work in a factory unless the foreman was a cigarmaker 
and a member of the union; if the foreman was not a 
member, he was required to join the union within one 
month. Employers were at first permitted but not re- 
quired to join the Association ; in case they belonged to 
the union, they were subject to the same rules as other 
members. In 1861 it was decided that no employer 
should be allowed to join the union, and in case any 
member became a "boss," he was to be expelled. From 
this date, the union became distinctively an employees' 
organization — a labor union — whose interests were op- 
posed to those of employers. 

The union was particularly opposed to allowing its 
members to work with those cigarmakers who had vio- 
lated the provisions of the constitution regarding the 
bill of prices. Cigarmakers who worked under price 
were expelled from membership and were known as 
"rats." If a "rat" wanted to join the Association he 
had to pay a ten dollar fine and furnish the names of 
the shops where he had worked. Such shops were known 
as "foul," and lists of these shops were distributed so as 
to prevent members of the union from working there with 
"rats." 

Strikes were of frequent occurrence. No member of 
the Association was allowed to work in a shop where the 
hands had quit on account of a reduction in prices or 
any other cause. The strikes were all shop strikes. 
Members employed in a shop could strike without first 



309] M. H. Hourwich 47 

submitting the dispute to the union. Strikes had to be 
reported, however, to the executive committee within 
twenty-four hours from the time they had begun, and the 
committee took immediate action upon the application 
of the strikers for support. The first strikes of which 
we have record were for the purpose of enforcing the 
closed shop, and occurred as early as 1856. Such strikes 
were directed against the employment either of non- 
unionist journeymen or non-union foremen. Strikes 
also occurred on account of reductions in the piece 
prices, for an advance in the prices for making certain 
shapes of cigars, and for the enforcement of the appren- 
ticeship regulations. There were also strikes for other 
causes, but they were less notable and not always 
sustained by the union. 



48 Economic Seminary [310 

COURSES IN POLITICAL ECONOMY 

Offered by The Johns Hopkins University 

graduate courses 

The graduate instruction in Political Economy is de- 
signed primarily to meet the needs of advanced students 
preparing for a professional career in economic science. 
The courses afford systematic instruction in general eco- 
nomic principles, intimate acquaintance with special 
fields of economic activity, and, most important of all, 
knowledge of and ability to employ sound methods of 
economic research. The work centres in the Economic 
Seminary, the membership of which is limited to the most 
advanced students, and the primary design of which is to 
develop scientific research in economic study and investi- 
gation. 

Formal graduate instruction is offered in Economic 
Theory and in Applied Economics, by parallel courses of 
lectures throughout the year. The particular topics 
treated vary from year to year. In 1908-09 Professor 
Hollander lectured two hours weekly on economic thought 
before Adam Smith, and two hours weekly on the theory 
and practice of exchange. During the year 1909-10 atten- 
tion was given, in the course on economic theory, to the 
economic system of David Ricardo. In the course on ap- 
plied economics, careful study was made of the history 
and theory of taxation. Associate Professor Barnett lec- 
tured during the first half-year on the development of fac- 
tory legislation and during the second half-year on the 
legal position of trade unions. Special courses of lectures 
were given during the year by Mr. John M. Glenn, Direc- 
tor of the Russell Sage Foundation, on "Problems of Re- 
lief ;" by Mr. Logan G. McPherson, of New York, on 
"Railway Transportation;" by Dr. James Bonar, Deputy 



311] Courses in Political Economy 49 

Master of the Canadian Mint, on "Justice and Distribu- 
tion." 

The courses offered for 1910-11 are as follows : 

1. The Economic Seminary. 

Two hours weekly, through the year. Professor Hollander and 
Associate Professor Barnett. 

The work of the year will continue to be a systematic study of 
the history, structure, and activities of labor organizations in the 
United States. 

2. The Principles of Political Economy. 

Two hours weekly, through the year. Professor Hollander. 

During the first half-year, attention will be paid to the proper 
method of economic inquiry; during the second half-year the 
fundamental theories of the science will be subjected to critical 
examination. Representative texts will be assigned for reading 
and study. 

3. Municipal Finance. 

Two hours weekly, through the year. Professor Hollander. 

During the first half-year, the historical development of Ameri- 
can local finance will be studied; during the second half-year, at- 
tention will be paid to the present fiscal problems of the Ameri- 
can city. 

4. Industrial Corporations. 

One hour weekly, through the year. Associate Professor Bar- 
nett. 

During the first half-year attention will be given to the history 
of the industrial corporation and to its position in modern eco- 
nomic organization; during the second half-year a detailed study 
will be made of the administration and financing of industrial 
corporations. 

Special courses of lectures will be given by non-resident lec- 
turers upon such practical economic problems as charities and 
correction, railway transportation, industrial organization. 

A reading class is organized yearly by the more advanced 
students of the department for the co-operative study of economic 
texts and for the critical discussion of current economic liter- 
ature. 

In co-operation with the departments of history and political 
science, opportunity is offered in the Historical and Political 
Science Association for the presentation and discussion of orig- 
inal papers in economic science by instructors and invited speak- 
ers, and for the review by students of current publications of 
importance in these fields. 



50 Economic Seminary [312 



UNDERGRADUATE COURSES 

1. (a) Economic History. 

The economic development of England from the tenth century 
to the present time and the most important experiences of the 
United States are studied. 

Three hours weekly, first half-year. Associate Professor Bar- 
nett. 

{b) Elements of Economics. 

Particular attention is given to the theory of distribution and 
its application to leading economic problems. 

Three hours weekly, second half-year. Associate Professor Bab- 

nett. 

2. (a) Finance. 

The theory and practice of finance are considered, with par- 
ticular reference to problems of taxation as presented in the 
experience of the United States. 

Three hours weekly, first half-year. Professor Hollander. 

{b) Money and Banking. 

The principles of monetary science are taught with reference 
to practical conditions in modern systems of currency, banking, 
and credit. 

Three hours weekly, second half-year. Professor Hollander. 

3. (a) Statistical Methods. 

After a preliminary study of the value and place of statistics 
as an instrument of investigation, attention is directed to the 
chief methods used in statistical inquiry. 

Three hours weekly, first half-year. Associate Professor Bar- 
nett. 

(b) Economic Institutions. 

Labor unions, corporations, and trusts are studied primarily 
as elements in the organization of industry. 

Three hours weekly, second half-year. Associate Professor Bar- 

NETT. 



Note. — Undergraduate course 2 is open only to such students as 
have completed course 1; and, save under exceptional circumstances, 
course 3 only to students who have completed 1 and 2. 



TRADE-UNION STUDIES 



For several years the Economic Seminary of the Johns Hopkins 
University has been largely engaged in investigating certain phases of 
American trade-unionism. Some results of this investigation have 
been published, as follows: 

The Finances of American Trade Unions. By A. M. 

Sakolski. (Paper) 75c. (The Johns Hopkins Press, 
Baltimore, Md.) 

National Labor Federations in the United States. By 

William Kirk. (Paper) 75c. (The Johns Hopkins 
Press, Baltimore, Md.) 

Apprenticeship in American Trade Unions. By James 
M. Motley. (Paper) 50c. (The Johns Hopkins Press, 
Baltimore, Md.) 

Beneficiary Features of American Trade Unions. By 

James B. Kennedy. (Paper) 50c. (The Johns Hop- 
kins Press, Baltimore, Md.) 

Bibliography of American Trade=Union Publications. 

Second Edition. Edited by George E. Barnett. (Paper) 
75c. (The Johns Hopkins Press, Baltimore, Md.) 

Studies in American Trade Unionism. Edited by J. H. 
Hollander and G. E. Barnett. (Cloth) $2.75. (Henry 
Holt & Co., New York.) 

The Printers: A Study in American Trade Unionism. 

By George E. Barnett. (Paper) $1.50, (Cloth) $2.00. 
(American Economic Association, Cambridge, Mass.) 



A REPRINT OF ECONOMIC TRACTS 



The Johns Hopkins Press invites subscriptions to a reprint of 
four important economic essays of the eighteenth century, to be 
issued consecutively under the editorial direction of Professor 
Hollander: — 

The Querist, containing several queries, proposed to the con- 
sideration of the public. Parts I, II, III. By George Berke- 
ley. Dublin, 1735-37. 

An Essay on the Governing Causes of the Natural Rate of 
Interest; wherein the sentiments of Sir William Petty and 
Mr. Locke, on that head, are considered. By Joseph Massie. 
London, 1750. 

Money answers all Things: or an essay to make money suffi- 
ciently plentiful amongst all ranks of people, and increase 
our foreign and domestic trade. By Jacob Vanderlint. 
London, 1734. 

An Essay on Ways and Means for raising Money for the 
support of the present war, without increasing the 
public debts. By Francis Fauquier. London, 1756. 

Each tract will be supplied by the editor with a brief introduc- 
tion and with text annotations where indispensable. The gen- 
eral appearance of the title-page will be preserved, and the 
original pagination will be indicated. 

The edition will be limited to five hundred copies. With a 
view to serving the largest student usefulness, the subscription 
for the entire series of four tracts has been fixed at the net price 
of Two Dollars. 



Of the tracts heretofore reprinted, a limited number can yet be 
obtained, as follows. As the editions approach exhaustion, the 
prices indicated are likely to be increased without notice: — 
Asgill, "Several Assertions Proved." London, 1696. Price, 50 

cents. 
Barbon, "A Discourse of Trade." London, 1690. Price, 50 cents. 
Fortrey, "England's Interest Considered." Cambridge, 1663. 

Price, 50 cents. 
Longe, "A Refutation of the Wage-Fund Theory." London, 1866. 

Price, 75 cents. 
Mai thus, "An Inquiry into the Nature and Progress of Rent." 

London, 1815. Price, 75 cents. 
North, "Discourses upon Trade." London, 1691. Price, 50 cents. 
Ricardo, "Three Letters on 'The Price of Gold,' " London, 1809. 

Price, 75 cents. 
West, "Essay on the Application of Capital to Land." London, 

1815. Price, 75 cents. 

Subscriptions and orders should be sent to 

The Johns Hopkins Press, 

Baltimore, Maryland. 



CURRENT NOTES 



Among the lectures recently delivered in McCoy Hall the fol- 
lowing are noteworthy: 

Dr. Eduard Meyer, Professor of Ancient History in the University 
of Berlin, on (1) "Egypt at the Time of the Pyramid Builders," (2 
"Augustus," March 31 and April 1. 

Dr. J. Rendel Harris, Director of Studies in the Woodbrooke 
Settlement, Birmingham, England, on "An Early Christian 
Psalter," April 11. 

Dr. James S. Reid, Professor of Ancient History in the Uni- 
versity of Cambridge., on "The Roman 'Colonia' as an Instrument 
for the Spread of Roman Influence and Culture," April 29. 

Before the Baltimore Society of the Archaeological Institute of 
America, Professor William K. Prentice, of Princeton Univer- 
sity, recently a professor in the American School at Athens, on 
"Ancient Athens in the Modern City," March 29. 

Before the Municipal Art Society, Dr. William H. Tolman, of 
New York, on "The City Beautiful," March 14; Mr. Royal 
Cortissoz, of New York, on "The Charm of Paint," April 18. 

Before the Alliance Francaise, M. Camille Enlart, Director of the 
Museum of Comparative Sculpture of the Trocadero, on "L' Archi- 
tecture Coloniale et la Colonisation au Moyen Age," March 11. 

Before the Public School Teachers' Association of Baltimore, 
Mr. Bernard N. Baker, President of the Moral Education So- 
ciety, and Mr. Milton Fairchild, on "Teaching Morals by Photo- 
graphs," February 12; Professor Joseph S. Ames, on "Comets, 
with Special Reference to Halley's Comet," April 9. 



The following department courses before students of History, 
Political Economy, and Political Science have been given by non- 
resident lecturers: 

Baron Serge A. Korff, Professor of Russian Public Law in the 
University of Finland, on "The History of the Political and Social 
Institutions of the Russian Empire in the Nineteenth Century," 
five lectures, April 13-May 18. 

Dr. James Bonar, Deputy Master of the Canadian Branch of 
the Royal Mint, on "Disturbing Elements in the Study and 
Teaching of Political Economy," five lectures, April 25-29. 

Hiram Btngham, Ph. D., Lecturer on Latin-American History 
in Yale University, on "The History of the Scots-Darien Com- 
pany, — an International Episode," ten lectures on the Albert 
Shaw foundation, February 25-March 22. 



The Thirteenth Annual Interclass Debate and Contest in Public 
Speaking by undergraduates was held March 10. 



THE JOHNS HOPKINS PRESS OF BALTIMORE 



American Journal of Mathematics. Frank Morley, Editor. Quarterly. 

4to. Volume XXXII in progress. $5 per volume. (Foreign postage, 

fifty cents.) 
American Chemical Journal. Ira Remsen, Editor. Monthly. 8vo. 

Volume LXII1 in progress. $5 per year. (Foreign postage, fifty cents.) 
American Journal of Philology. B. L. Gildersleeve, Editor. Quarterly, 

8vo. Volume XXXI in progress. $3 per volume. (Foreign postage, 

fifty cents.) 
Studies in Historical and Political Science. Under the direction of the 

Departments of History, Political Economy, and Political Science. 

Monthly, 8vo. Volume XXVIII in progress. $3 per volume. (Foreign 

postage, fifty cents.) 
Johns Hopkins University Circular, including the President's Report, 

Annual Register, and Medical Department Catalogue. Monthly. 8vo. 

$1 per year. 
Johns Hopkins Hospital Bulletin. Monthly. 4to. Volume XXI in 

progress. $2 per year. (Foreign postage, fifty cents.) 
Johns Hopkins Hospital Reports. 8vo. Volume XV in progress. $5 per 

volume. (Foreign postage, fifty cents.) 
Contributions to Assyriology and Semitic Philology. Paul Haupt and 

Friedrich Delitzsch, Editors. Volume VII in progress. 
Memoirs from the Biological Laboratory. Five volumes have appeared. 
Modern Language Notes. A. M. Elliott, Editor; J. W. Bright and H. 

Collitz, Associate Editors. Eight times yearly. 4to. Volume XXV 

in progress. $1.50 per volume. (Foreign postage, twenty-five cents.) 
American Journal of Insanity. Board of Editors. Quarterly. 8vo. 

Volume LXVI in progress. $5 per volume. 
Terrestrial Magnetism and Atmospheric Electricity. L. A. Bauer, 

Editor. Quarterly. 8vo. Volume XV in progress. $2.50 per volume. 

(Foreign postage, twenty-five cents.) 
Reprint of Economic Tracts. J. H. Hollander, Editor. Third series, 

in progress. $2.00. 
Report of the Maryland Geological Survey. 



Rowland's Photograph of the Normal Solar Spectrum. Ten plates. $25. 
Photographic Reproduction of the Kashmirian Atharva-Veda. M. Bloom- 
field, Editor. 3 vols. Folio. $50. 
Poem a de Fern an Goncalez. Edited by C. Carroll Marden. 284 pp. 8vo. 

$2.50 net. 
The Taill of Rauf Coilyear. Edited by William Hand Browne, 164 pp. 

8vo. $1.00 net. 
A New Critical Edition of the Hebrew Text of the Old Testament. 

Paul Haupt, Editor. Prospectus on application. 
Studies in Honor of Professor Gildersleeve. 527 pp. 8vo. $6. 
The Physical Papers of Henry A. Rowland. 716 pp. 8vo. $7.50. 
The Oyster. By W. K. Brooks. 225 pp. 8vo. $1. 
Ecclesiastes: A New Metrical Translation. By Paul Haupt. 50 pp. 

8vo. 50 cents. 
The Book of Nahum: A New Metrical Translation. By Paul Haupt 

53 pp. 8vo. 50 cents. 
Ancient Sinope. By David M. Robinson. 112 pp. 8vo. $1. 
Notes on Stahl's Syntax of the Greek Verb. By Basil L. Gildersleeve. 

65 pp. 50 cents. 
The Hague Peace Conferences of 1899 and 1907. By James Brown Scott 

Vol. I, The Conferences, 887 pp.; Vol. II, Documents, 548 pp. 8vo. $5. 



Communications should be addressed to 
The Johns Hopkins Press. 



4 Zee 
It 

No. 4 
THE 

JOHNS HOPKINS 
UNIVERSITY CIRCULAR 



THE 

ECONOMIC SEMINARY 
1910-11 



Baltimore, Maryland 

Published by the University 

Issued Monthly prom October to July 

April, 1911 

[New Series, 1911, No. 4] 
[Whole Number, 234] 

Entered, October 21, 1903, at Baltimore, Md., as eecond class matter, under 
Act of Congress of July 16, 1894. 



I Sim) 



JOHNS HOPKINS UNIVERSITY CIRCULAR, No. 234 

APRIL, 1911 
CONTENTS 

PAGE 

The Economic Seminary 1 

The Defect in Adam Smith's Theory of Money. By 
Jacob H. Hollander 4 

The Breaking Down of the Distinctions between the 
Classes of Banks in the United States. By George 
E. Barnett 8 

The Union Argument for the Closed Shop. By Frank 
T. Stockton 12 

Admission of Aliens to Membership in American Trade 
Unions. By F. E. Wolfe 16 

The Introduction of the Owens Automatic Bottle Ma- 
chine. By A. B. Morton 24 

The Introduction of the Penitentiary System in Mary- 
land. By A. O. Mullen 28 

The Early History of the Cigarmakers' Union. By 
Marie H. Hourwich 33 

The Influence of Labor Unions upon Legislation in 
Maryland. By H. Wirt Steele 38 

The Initiation and Control of Strikes in the Interna- 
tional Cigarmakers' Union. By George M. Janes . 44 

Jurisdictional Disputes between the Plumbers and 
Steamfitters. By N. R. Whitney 49 

The Beginning of the Baltimore Straw Hat Industry. 
By J. Luther Martin 52 

Trade Union Co-operation with Organized Charities in 
Baltimore. By C. C. Rohr 56 

Studies in Trade Unionism 60 

A Reprint of Economic Tracts ol 

Current Notes 62 

Proceedings of Societies 63 



THE 

JOHNS HOPKINS 
UNIVERSITY CIRCULAR 

New Series, 1911, No. 4 APRIL, 1911 Whole Number, 234 

THE ECONOMIC SEMINARY, 1910-1911 

Edited by Professor Jacob H. Hollander and Associate 
Professor George E. Barnett. 



The work of the Economic Seminary during the current 
academic year has centered as heretofore in an investiga- 
tion of the organization and activities of American trade 
unions. Various inquiries before instituted were pushed 
forward to completion and substantial progress was made 
in certain other aspects of the subject, notably, (a) juris- 
dictional disputes, (b) social activities, (c) the control of 
strikes. In the summer of 1910 each member of the 
Seminary carried on field work in connection with the 
particular phase of the subject in which he was interested. 
The summer work was fruitful also in adding materially 
to the large collection of trade-union publications in the 
possession of the University. 

During the past year Ernest E. Spedden's dissertation 
on "The Trade-Union Label" appeared in the Johns 
Hopkins University Studies in Historical and Political 
Science, Series XXVIII, Xo. 2. Three other monographic 
studies submitted by members of the Seminary, in part 



2 Economic Seminary [284 

fulfilment for the doctor of philosophy degree, are now 
in press for early issue: "The Government of American 
Trade Unions," by Theodore W. Glocker; "The Standard 
Kate in American Trade Unions," by David A. McCabe; 
"The Closed Shop in American Trade Unions," by Frank 
T. Stockton. 

The course of five lectures delivered before the Economic 
Seminary in April, 1910, by Dr. James Bonar, Deputy 
Master of the Canadian Mint, on "Disturbing Elements in 
the Study and Teaching of Political Economy," was issued 
in book form by the Johns Hopkins Press. Professor 
Hollander published under the caption of "David Kicardo, 
A Centenary Estimate," (Studies, Series XXVIII, No. 4) 
an expansion of three lectures before the Economic De- 
partment of Harvard University, to mark the centenary 
anniversary of the appearance of Ricardo's first important 
publication. The results of an investigation of State 
banks and trust companies, made by Dr. Barnett for the 
National Monetary Commission, appeared under the title 
"State Banks and Trust Companies in the United States 
since the Passage of the National Bank Act" (Senate 
Document No. 659, 61st Congress, third session, Wash- 
ington, 1911). In the reprint of economic tracts there 
appeared, under Professor Hollander's editorship, the 
unobtainable first edition of Bishop Berkeley's "The 
Querist," one of the characteristic economic contribu- 
tions of the eighteenth century. 

The record of the proceedings of the Seminary, and 
abstracts of certain papers presented are appended : 

Oct. 12 — Reports on summer field work by Professor Hollander 
and Associate Professor Barnett. 

Oct. 20 — "The Closed Shop as a Trade Union Device," by F. T. 
Stockton. 

Oct. 26 — Reports on summer field work by Miss Hourwich and 
Messrs. Stockton, Wolfe, Mullen and Morton. 

Nov. 3 — "Competency as a Qualification for Membership in 
American Trade Unions," by F. E. Wolfe. 



285] Proceedings 3 

Nov. 9 — ''Introduction of Machinery into the Manufacture of 
Window Glass," by A. B. Morton. 

Nov. 17 — "Some Conclusions from a Study of State Banks and 
Trust Companies," by Associate Professor Barnett. 

Nov. 23 — "Jurisdictional Disputes between the United Asso- 
ciation of Plumbers and the International Association of Steam 
Fitters," by W. R. Whitney. 

Dec. 1 — (a) "Initiation and Control of Strikes in the Bricklay- 
ers and Masons' International Union," by G. M. Janes; (b) 
"Charitable Activities of Trade Unions in Baltimore," by C. C. 
Rohr. 

Dec. 7— "Forms of the Closed Shop," by F. T. Stockton. 

Dec. 15 — "Admission of Immigrants into American Trade 
Unions," by F. E. Wolfe. 

Dec. 21 — "Liability of Stockholders of State Banks," by As- 
sociate Professor Barnett. 

Jan. 4 — "The St. Louis Meeting of the American Economic 
Association," by Professor Hollander and Associate Professor 
Barnett. 

Jan. 13 — "The Introduction of Machinery into the Manufac- 
ture of Glass Bottles," by A. B. Morton. 

Jan. 19 — "The Early History of the Cigar Makers," by M. H. 
Hourwich. 

Jan. 25— "Social Aspects of Trade Union Activities in Balti- 
more," by C. C. Rohr. 

Feb. 2 — "The Control of Strikes in the Cigar Makers' Inter- 
national Union," by G. M. Janes. 

Feb. 8 — "The Development of the Theory of Money from Adam 
Smith to David Ricardo," by Professor Hollander. 

Feb. 16 — "The Punishment of Criminals in Maryland prior to 
the Establishment of the Penitentiary," by A. O. Mullen. 

Mar. 2 — "Jurisdiction in the Granite Cutters' Union," by N. 
R. Whitney. 

Mar. 8 — "The Beginning of the Straw Hat Industry in the 
United States," by J. L. Martin. 

Mar. 16— "The Early Activities of the Cigar Makers' Union," 
by M. H. Hourwich. 

Mar. 22 — "Senator Aldrich's Plan for a National Reserve As- 
sociation," by F. T. Stockton. 

Mar. 31— "The Legal Protection of Trade-Union Membership," 
by F. E. Wolfe. 



Economic Seminary [28G 



THE DEFECT IN ADAM SMITH'S THEORY OF 
MONEY. 

By Jacob H. Hollander 

The serious defect in Adam Smith's theory of money — 
the more significant in the light of subsequent monetary 
happenings — appeared in connection with the inevitable 
query: How much money ought a country to have 
and what are the symptoms and measure of excess or 
deficiency ? It was precisely about this point — the forces 
determining the normal amount of a country's money 
supply — that succeeding controversies raged, — the repeal 
of the Bank Restriction in the first quarter of the nine- 
teenth century, the revision of the Bank Charter in the 
second, and it was precisely here that the "Wealth of 
Nations" was lacking. That there was, at any given time 
and in the case of every particular country, a customary 
amount of money which neither design nor circumstance 
could permanently augment, was a necessary corollary of 
all argument against mercantilist theory and balance of 
trade policy, and this proposition Adam Smith, like a 
succession of writers before him, maintained with great 
force and abundant illustration. But to the further 
question, "How much money is it right and sufficient for 
a country to have?" Smith gave no answer, beyond saying 
vaguely that it was determined by "effectual demand," 
being always the sum required to circulate and distribute 
to its proper consumers the annual produce of the land 
and labor of the country. He did indeed imply that this 
sum bore some proportion to the whole value of the 
annual produce circulated by it, but he added that such 
proportion had been computed by different authors "at a 
fifth, at a tenth, at a twentieth and at a thirtieth part 
of that value" — and refrained from venturing upon a 
formula of his own. 



287] J. H. Hollander 5 

Adam Smith made familiar use of the failure of Spain 
and Portugal to augment their money supply by accumu- 
lation; and he recounted the early experiences of the 
Bank of England and the Scotch banks, whereby a con- 
tinuing policy of excessive note issue had caused a steady 
loss of bullion and a chronic replacement of the Bank's 
gold. But such occurrences were cited only in confirma- 
tion of his empirical assumption that the amount of 
money which a country could "easily absorb and employ" 
was a definite sum, fixed by the interior exchange re- 
quirements of that particular country and irrespective 
of all external conditions. Redundancy — to whatever 
cause due, whether mines or banks — would be followed 
by an efflux of gold; but only for the reason that the 
"channel of circulation" must in such event overflow, 
and this overflow, being too valuable to lie idle, was sent 
abroad "to seek that valuable employment which it can- 
not find at home." 

The absence from the "Wealth of Nations" of any ade- 
quate discussion of the normal quantity of a country's 
supply of money and of the symptom and test of redun- 
dancy is the more surprising in view of the frequency 
with which the doctrine of the "territorial distribution" 
of the precious metals had cropped out in earlier economic 
writing. With some justice Eicardo was able in 1810 to 
speak of "the most approved writers in political economy" 
sharing such an opinion. North, Locke, Berkeley, Can- 
tillon, Petty and Barbon — had in turn pointed out the 
fallacy of the mercantilist accumulation of specie, and 
had set forth that the amount of money in any particular 
country tends to a fixed and definite proportion of the 
nation's resources. In Hume and Harris casual expres- 
sions were replaced by explicit and unmistakable expo- 
sition, not indeed as a direct phase of monetary theory, 
but as a final refutation of the mercantilistic fallacy 
of metallic accumulation. Money is like water, Hume 
declared — and his argument was developed and amplified 



6 Economic Seminary [288 

by the author of the ''Essay upon Money and Coin," "the 
judicious and intelligent Harris," in Chalmers' phrase — 
tending everywhere to a level through the means of rela- 
tive prices and international trade, and this not by any 
physical force but by "a moral attraction arising from 
the interests and passions of men, which is full as potent 
and infallible." If four-fifths of all the money in Britain 
were destroyed in a night, or conversely if the supply 
were multiplied five-fold, a relative level would promptly 
be restored, and the same causes which would correct 
these inequalities due to the miraculous "must prevent 
their happening in the common course of nature, and 
must forever, in all neighboring nations, preserve money 
nearly proportioned to the art and industry of each 
nation." 

It is true that Hume's opinions, widely circulated and 
influential as they were, did not pass unchallenged. A 
few years later Sir James Steuart controverted Hume's 
position both as to the relation of money to prices and as 
to the tendency of money everywhere to maintain its 
level, with a vehemence that in itself might have been 
expected to arrest Smith's attention. Insisting that it 
was one of "the objects of a statesman's attention" to 
maintain "a just proportion between the produce of in- 
dustry, and the quantity of circulating equivalent, in the 
hands of his subjects, for the purchase of it," — Steuart 
denied with characteristic indirection Hume's "territorial 
distribution" theory. In positive exposition, however, 
Steuart made little progress beyond asserting that "it is 
impossible to determine the proportion of coin necessary 
for carrying on the circulation of a country, especially of 
one where neither loan, or paper credit, that is the melt- 
ing down of solid property, are familiarly known." 

As a matter of fact, however, Adam Smith was neither 
convinced by Hume nor converted by Steuart. He merely 
accepted the fact and gave little concern to the theory. 
Indeed there was little in contemporary monetary experi- 



289] J. H. Hollander 7 

ence to emphasize the importance of such an inquiry. 
England was not then, as a generation later, confronted 
with the inconveniences of monetary redundancy on the 
one hand, nor exposed to the evils of monetary scarcity 
on the other. In so far as the currency of a country 
might be augmented by metallic accumulation, Smith 
deemed himself concerned with a worn-out mercantilist 
fallacy rather than a present monetary problem, and 
contented himself with the familiar reductio ad absurdum 
as to Spain's experience. In so far as the source of 
augmentation might be a note-issuing ; bank, Smith 
shared the view that the absorption of such a ''well 
regulated paper money" was accompanied by an equiva- 
lent displacement of specie. In this sense Hume in 
1752, had spoken of paper credit as "a counterfeit 
money," of public convenience only when issued, as by 
the Bank of Amsterdam, upon the basis of equivalent 
bullion, and of which any further emission was harmful 
in that it expelled a corresponding amount of specie ; and 
Harris, writing in 1758, had repeated that any increase 
of bank notes much beyond an identical stock of bullion 
was likely to prove mischievous both by "increasing in 
effect the quantity of circulating cash beyond its natural 
level, and by endangering in a cloudy day, their own 
credit." 

In short, the possibilities with which Adam Smith 
thought he had to deal in the matter of an increase in 
the country's money supply were, first, a futile accumula- 
tion of specie by manipulated trade or colonial exploita- 
tion, and, second, an excessive issue of notes payable in 
demand. It was to these contingencies alone that he con- 
fined his argument and directed his theory. That it 
might be possible for the currency of England to be 
swollen by a continuing issue of inconvertible bank notes 
and that, in consequence, there must be, as the basis for 
positive legislation, some theoretical determination of the 
normal money requirement were developments of which 
Smith and his immediate successors never dreamed. 



Economic Seminary [290 



THE BREAKING DOWN OF THE DISTINCTIONS 

BETWEEN THE CLASSES OF BANKS IN 

THE UNITED STATES 

By George E. Barnett 

The 25,000 banks in operation in the United States are 
ordinarily classified into (a) national banks, (b) State 
banks, (c) trust companies, (d) stock savings banks, 
(e) mutual savings banks, and (f) private banks. This 
classification it will be noted is based not on a single but 
on several criteria. Private banks, for example, are dis- 
tinguished from the other classes by the fact that private 
banks are not incorporated, while stock savings banks 
differ from mutual savings banks in that the former have 
a capital stock while the latter do not. The classification 
by means of several criteria has tended to obscure the 
fact that the really important differences between several 
of the classes — differences in the character of their busi- 
ness — are less than formerly. 

In 1870 the banks of the United States might, with 
some exactness, have been divided according to the char- 
acter of their business into three great classes. First, 
the commercial banks, i. e., banks doing a discount and 
deposit business. In this class were included the national, 
State, and private banks. Second, the savings banks, i. e., 
banks receiving savings deposits. This class included the 
mutual and the stock savings banks. Third, the trust 
companies, which were organized to serve in various 
fiduciary relations, and which also had power to receive 
trust deposits. The differences among these classes in 
the kind of business they conduct are far less clearly 
marked at the present time. This change has been due to 
two developments. In the first place, many of the com- 
mercial banks and trust companies have undertaken more 
and more the receiving of savings deposits. Secondly, the 



291] G. E. Barnett 9 

trust companies or many of them have increased their 
banking activities to include the business of discount and 
deposit. 

(1) The extension of the business of national banks to 
include the taking of savings deposits has not required 
the granting of new powers. Similarly, in most of the 
States, the State banking laws have always permitted the 
taking of such deposits. In 1909 according to reports 
made to the National Monetary Commission, the savings 
deposits in the United States were distributed as follows : 

Amt. of sav- 
No. of ings de- 
Total No. reporting posits (in 
of banks banks millions) 

State Banks 11,319 8,258 597 

National Banks 6,893 6,592 757 

Trust Companies 1,079 862 657 

Mutual Savings Banks 642 627 3,138 

Stock Savings Banks 1,061 913 495a 

Private Banks 1,497 993 32 

alncludes other deposits. 

It will be noted that the State banks, national banks, 
private banks, and trust companies together hold consid- 
erably more than one-third of all the savings deposits in 
the United States. 

(2) The early trust companies practically all had power 
to receive deposits of money in trust. When they were 
chartered, it was expected, to quote the Report of the 
Massachusetts Commissioners of Savings Banks for 1871, 
that they would afford "to the owners of capital not 
engaged in business many of the advantages secured by 
our savings bank system for the savings of labor." The 
enlargement of the banking powers of the trust companies 
has been primarily an economic development and not one 
due to legislative design. The opportunity to enlarge the 
banking powers of the companies lay in the difficulty of 
distinguishing clearly between the powers which it was 
intended to confer upon the trust companies and the bank- 



10 Economic Seminary [292 

ing powers possessed by State and national banks. In 
the greater number of the States the wording of the sec- 
tions conferring powers to do a trust business was such 
that the trust companies were held by the courts to be 
empowered to do a banking business. If the power to do 
such business seemed not to be granted, the companies in 
some States were able by a change in the method of doing 
the kind of banking business in question to bring it within 
the powers actually conferred. In other States the trust 
companies have attained legal recognition of their bank- 
ing powers by slow steps. 

In 1909 according to reports made to the National 
Monetary Commission the trust companies of the United 
States held f 1,826,000,000 of individual deposits subject 
to check, against $3,514,000,000 of such deposits in the 
national banks and $1,409,000,000 in the State banks. 



The breaking down of the distinctions in the character 
of business done by the different classes of banks has pro- 
foundly influenced the character of the legal regulation of 
banking institutions. The older legislation separated the 
banks into classes and imposed upon each class certain 
regulations. There has recently been a strong tendency 
in State legislation to make the provision of the banking 
law apply to certain classes of business and not to classes 
of banks. The California bank act of 1909 contains the 
most complete application of the policy of disregarding 
the old line of distinction between the State banks, trust 
companies, and savings banks, and basing the regulation 
of the banking business on the character of the business. 
Under this act banks are nominally divided into commer- 
cial banks, savings banks, and trust companies. Any 
bank, however, may carry on any or all of the three 
classes of business, but each kind of business must be 
kept separate and distinct, and the regulations apply 
specifically to each department. The regulations, for 



293] G. E. Barnett 11 

instance, concerning the reserve to be held against de- 
mand deposits are the same whether the deposits are in 
a bank which has only a commercial department or 
whether they are in a bank which combines all three 
departments. 

The laws enacted in several States with reference to 
the treatment of savings deposits also illustrate the same 
tendency. In practically all the States and Territories, 
some at least of the State banks and trust companies 
receive such deposits. Until recently savings depositors 
in these institutions were on the same footing as other 
depositors. If the bank failed, they shared in the assets 
with other depositors. In fact, the savings depositor was 
in one way at a disadvantage, for a bank in danger of 
insolvency might refuse to allow the withdrawal of its 
savings deposits except after sixty or ninety days' notice. 
In the meantime, the other depositors might withdraw 
their deposits or a considerable part of them, leaving the 
savings depositors to bear the burden of the failure. In 
1891 the New Hampshire legislature enacted a law which 
applied to savings deposits in trust companies the prin- 
ciples which has been worked out through the experience 
of many years for mutual savings banks. The savings 
deposits were to be segregated and held in a separate 
department and were to be invested only in the securities 
in which it was permissible for mutual savings banks to 
invest their funds. In the event of the insolvency of the 
bank, the assets of the savings department were to be 
used in paying the savings depositors. In 1899 the 
Michigan bank act, which already provided for the invest- 
ment of savings deposits in specified securities, was 
amended so as to provide that "all the investments re- 
lating to the savings department shall be kept entirely 
separate and apart from the other investments of the 
bank." The supreme court of Michigan in interpreting 
this provision said: "So long as it is entirely possible 
to trace the fund which was invested in these securities 



12 Economic Seminary [294 

as a fund derived from the savings department, we think 
there is no difficulty in saying that it should be impressed 
with a trust in favor of the savings depositors." In order 
to make certain that such funds should be traceable, the 
legislature of Michigan provided, in 1909, for the impo- 
sition of a fine on any bank combining commercial and 
savings banking which did not keep separate accounts 
and investments. Legislation similar to that in New 
Hampshire and Michigan was enacted in Connecticut in 
1907, in Massachusetts and Rhode Island in 1908, and in 
California and Texas in 1909. 



THE UNION ARGUMENT FOR THE CLOSED SHOP 

By Frank T. Stockton 

In answer to the attacks made upon the closed shop, 
American trade unions which uphold the closed shop 
have felt obliged to explain at some length the motives 
which induce them to exclude non-members from employ- 
ment. These unions claim, in the first place, that the 
closed shop is necessary in order to enforce discipline. 
The function of a labor organization is to secure higher 
wages, shorter hours and more satisfactory working con- 
ditions for its members. To gain these ends it is neces- 
sary that every unionist shall observe the rules and agree- 
ments of his union and refuse to work otherwise than as 
it directs. If he fails to do this he must be punished 
in order to prevent others from following his example. 
No penalty is so thoroughgoing in its enforcement of 
discipline as that which deprives a man of his liveli- 
hood and this is what the closed shop does in the case 
of "scabs." The latter fear unemployment to a far 
greater degree than mere social ostracism or loss of 
membership. Accordingly the closed shop is a "stimu- 
lus" which is the "best possible means" of holding work- 



295] F. T. Stockton 13 

men " to fidelity to the union." Similarly, non-members 
are influenced not to become strike-breakers. 

Secondly, the unions insist that unless they have full 
control over all the men in a particular shop they can- 
not enforce the provisions of a contract with the em- 
ployer. Since the employer is constantly seeking to ex- 
tend the responsibility of trade unions, to meet this re- 
sponsibility it is incumbent upon labor organizations to 
exercise jurisdiction over all the men in the shop. In 
an open shop, while union men can be disciplined to 
some extent by expulsion from their organizations for 
failing to observe the provisions of the contract, both 
employer and union are "subject to the irresponsibility 
of the non-unionist or his failure to act in concert with 
. . . the unionists." In a closed shop all workmen 
are equally responsible for the fulfillment of the col- 
lective contract since all are parties to it in the same 
degree. Collective bargaining thus becomes "complete, 
effective, successful." 

Again, the open shop is opposed on the ground that it 
would ultimately result in making many shops non- 
union. Particularly would this be the case if the open 
shop involved the use of individual agreements between 
employer and non-unionist. Non-union men would not 
be restrained from working to suit themselves, irre- 
spective of the wishes of the union. Many of them 
would be "subservient" enough to cut wages, work over- 
time, etc., in order to obtain the employer's favor. Nat- 
urally the latter would encourage the employment of 
men who did as he liked them to do, and so, one by one, 
union men would be discharged. Accordingly it has 
been said that the open shop "means only an open door 
through which to turn the union man out and bring the 
non-union man in to take his place." 

But even if individual agreements are replaced by 
an agreement between union and employer covering all 
the men in the shop, unionists contend that the em- 



14 Economic Seminary [296 

ployer, if allowed to maintain an open shop, will favor 
non-unionists. The employer will arrange that "the pro- 
motions, the easy places, the favors, all fall to the non- 
union workman. . . . This is his reward for mind- 
ing his own business. . . . Union men are much like 
other men. They cannot long be persuaded to pay dues, 
or make sacrifices to their organization, when they find 
that others are favored or promoted over them, or receive 
special privileges because they are non-union men." Con- 
sequently, they, too, will try to "curry favor with the 
boss" by accepting secret reductions in their wages or 
even by leaving the union. "The result," to quote Mr. 
John Mitchell, "of a number of non-unionists cutting 
wages or the price of work is like the existence in a com- 
munity of healthy people of a man afflicted by a con- 
tagious disease." 

Going a step farther, advocates of the closed shop con- 
tend that even if agreements were signed with employ- 
ers for all their employes and if employes did not favor 
non-unionists, yet the open shop would in many cases 
result in non-union conditions. This would prove to be 
the case, it is said, because in such shops non-union men 
would receive the same benefits as unionists and yet 
would not be compelled to help support the union. The 
secretary of the Bricklayers in a recent report said, "It 
is only logical to suppose that if the benefits of collective 
bargaining could be secured without paying dues, etc., 
only the faithful would remain." Sooner or later then, 
the shop must become practically non-union if it is not 
made a strict closed shop. Mr. Samuel Gompers has re- 
peatedly affirmed that "any establishment cannot long 
remain part union and part non-union." 

Even if it were possible for unions to maintain their 
membership in open shops, the unionists claim that all 
persons who receive benefit from the existence of a union 
should be forced to aid in its support. The non-unionist 
who accepts higher wages as the result of union efforts 



297] F. T. Stockton 15 

and makes no sacrifice in return, is denounced as an 
"industrial parasite/' No matter how much union mem- 
bership benefits those who enjoy it, it is "not in human 
nature to expect that a man who has borne the brunt of 
the conflict and the heat of the day should view with 
equanimity his enemies, or, at all events, his lukewarm 
allies enjoying the fruits of his toil." Unionism has 
gained many victories for labor in the past. It is not ex- 
pected of the non-unionist that he pay for these. The 
only requirement made of him is that "the cost and bur- 
den of union management and action be fairly shared in 
the future." There is no other way, as far as unionists 
and their sympathizers can see, by which non-unionists 
can be held up to their moral obligation to support the 
organizations which advance their interests except by 
discrimination against their employment. 

The closed shop has also been defended as a trade 
union device on the ground that it aids unions in in- 
creasing their membership. It is claimed that if men 
know that they cannot obtain employment without hav- 
ing a union card or "permit" in their possession they 
will speedily obtain admission into the union of their 
trade. Experience, it is pointed out, has shown this to 
be a fact in many instances. Certain workmen are al- 
ways "in and out" of the union. They are "in the 
union" when the closed shop is so well enforced that 
they cannot obtain employment without union member- 
ship. They are "out of the union" when they are work- 
ing in a locality where the open shop prevails. One 
union leader, in fact, has gone so far as to say that 
"the mere closing of one door to the non-unionists is 
the best argument; to him for application, and the value 
of the card is an incentive for the member to continue 
holding it." 

Finally, it is asserted that in dangerous trades the 
closed shop is necessary because of the legal principle, 
known as the "fellow servant doctrine", under which 



16 Economic Seminary [298 

the employer is released from liability for accidents to 
workmen due to acts of their fellow employees. In open 
shops where the men as a whole have no choice in re- 
gard to their co-employees, work must be carried on 
with careless journeymen as long as it suits the em- 
ployer. But if the closed shop prevails, a careless work- 
man, who might be efficient in his work and yet has no 
regard for the welfare of his fellows, can be expelled 
from his union and thus be required to quit his employ- 
ment. If the principle is to prevail that "each is re- 
sponsible for all," then closed shop supporters insist 
that it is only in accordance with the "most elementary 
principles of self-preservation" for a workman to seek 
" through the union to have some voice in the choice of 
his fellow employees." It is his duty and privilege to 
say that he "will work only with men who have enough 
regard for their fellows to join them in a labor union 
for their self-defense." 



ADMISSION OF ALIENS TO MEMBERSHIP IN 
AMERICAN TRADE UNIONS 

By F. E. Wolfe 

It is argued by many trade unionists that the steady 
stream of immigrant labor which has poured into the 
United States during the last fifty years tends to depress 
wages. On this ground trade unions have, on occasion, 
demanded restrictive legislation concerning the admission 
of aliens to the country. Furthermore, a number of 
unions have preserved special conditions for the admis- 
sion of immigrants, foreigners, aliens or unnaturalized 
persons to union membership. These special conditions 
are the subject of the present paper. 

Many trades are without a considerable foreign-born 
element, and are not threatened with an over-supply of 



299] F. E. Wolfe 17 

workmen from increased immigration. For example, the 
Printing Pressmen, Commercial Telegraphers, Bridge and 
Structural Iron Workers, Steam Fitters, Saw Smiths, and 
Plumbers represent trades into which large numbers of 
recent immigrants have not entered and may not be ex- 
pected to enter. These unions have never required special 
conditions for the admission of immigrants, but have per- 
mitted the local unions to decide for themselves as to 
admitting such persons. On the other hand, there are 
many trades into which immigrants or certain classes of 
immigrants readily pass. The unions in these trades have 
been led to consider the admission of immigrants, and in 
some cases have imposed special requirements. 

Four special requirements have been imposed by unions 
for the admission of immigrants to membership: (1) 
naturalization, or declaration of intention to become a 
citizen; (2) payment of high initiation fees ; (3) approval 
or consent of the officers of the national union; (4) pres 
entation of the card of a foreign union. 

(1) Eleven national unions have in recent years pro- 
vided that foreign-born applicants may only be admitted 
to membership after naturalization or after legal declara- 
tion of intention to become naturalized citizens. The 
International Union of Bricklayers and Masons, and the 
International Union of United Brewery Workmen first 
adopted this provision in 1887. The other unions which 
have since made a similar rule include, in order of time, 
the Bakery and Confectionery Workers, Window Glass 
Workers, United Brotherhood of Carpenters, National 
Association of Marine Engineers, Hotel and Restaurant 
Employees, American Federation of Musicians, Com- 
pressed Air Workers, Slate and Tile Roofers, and Wood 
Carvers. 

The Marine Engineers and Window Glass Workers 
require full-fledged citizenship. Usually, however, the 
unions have accepted persons who have made a declara- 
tion before the legal authorities of intention to become 



18 Economic Seminary [300 

citizens. In 1902, for example, a local union of brick- 
layers in Bacine, Wisconsin, requested advice from the 
national union as to admitting seven immigrants who 
could not procure their first papers of naturalization 
because they had not been in the State one year. The 
national union recommended that a declaration of inten- 
tion before the local union should be accepted until the 
opportunity to comply with the law presented itself. 
The United Brewery Workmen and the American Federa- 
tion of Musicians admit persons who have secured their 
first naturalization papers, but make rigid provision for 
compelling the completion of the process of naturalization. 

The reasons ordinarily advanced in explanation of the 
requirement of citizenship involve political and economic 
considerations. The United Brewery Workmen at their 
second annual convention in 1887 emphasized the neces- 
sity of the members acquiring citizenship "in order to 
assist in the social and political reform of our adopted 
fatherland." The union has since maintained the rule 
as being in support of its policy of promoting the welfare 
of its members, "through active participation in the 
political movements of the country." Desire for political 
strength in elections to oppose the prohibition movement 
probably accounts partly for the maintenance of the rule. 
The well-known socialistic proclivities of the union are 
also probably responsible in part for the rule. The mem- 
bership has always been composed to a large extent of 
persons of foreign birth, and particularly of immigrants 
from Germany. The American Federation of Musicians, 
and Bakery and Confectionery Workers have also through- 
out their history been largely composed of immigrant 
workmen, and for political purposes citizenship has also 
been required. 

Opposition on economic grounds to a large increase of 
foreign workmen in the trade also explains in part the 
desire to delay their admission into the union until 
naturalization has been begun. The Bricklayers and 



301] F. E. Wolfe 19 

Masons, and the United Brotherhood of Carpenters seem 
to have adopted the requirement partly in order to pre- 
vent a rapid influx of immigrant workmen into their 
trades. The requirement in the National Association of 
Window Glass Workers is one of several means which 
that union has adopted to discourage glass workers from 
coming to the country. 

(2) An invariable condition of admission to any union 
is the payment of an initiation fee. Usually the amount 
is small, and is not sufficient to discourage the entrance 
of prospective members. Certain unions, however, demand 
higher initiation fees of immigrants than of other appli- 
cants. High and in some cases prohibitive initiation fees 
are imposed on this class of workmen by the Sanitary 
Potters, Granite Cutters, Brewery Workmen, Lithog- 
raphers, Stone Cutters, Table Knife Grinders, Pen and 
Pocket Knife Blade Grinders and Finishers, Print Cutters, 
Wire Weavers, Lace Operatives, Flint Glass Workers, 
Window Glass Workers and Glass Bottle Blowers. The 
Wire Weavers, since 1895, and the Glass Bottle Blowers, 
since 1903, have charged immigrant workers five hundred 
dollars as an initiation fee. This is the highest regular 
initiation fee imposed upon any applicant in any Ameri- 
can trade union. The lowest special fee for immigrants 
is that of ten dollars required by the Flint Glass Workers. 
The Window Glass Workers in 1892 fixed the initiation 
fee of immigrants at two hundred dollars, in 1895 at five 
hundred dollars, and in 1904 at three hundred dollars. 
Since 1907 the national executive board has been empow- 
ered to determine the fee for each individual case. 

The national unions in other trades prescribe only a 
minimum initiation fee for all applicants, but reserve to 
local unions the right to increase the fee to any limit for 
special cases. In the port cities of the United States, the 
local unions in some trades have exercised this right by 
imposing higher fees on immigrants. Local unions of the 
Plasterers and of the Pattern Makers impose special fees 



20 Economic Seminary [302 

upon immigrants, in addition to the minimum set by the 
national union. 

The purpose of imposing special initiation fees upon 
immigrants is in many instances to secure payment for 
advantages and privileges which are about to be received, 
and which would otherwise be procured without adequate 
contribution from the prospective members. High fees 
on the admission of immigrants are acknowledged to be 
for purposes of exclusion by the Glass Bottle Blowers, 
Window Glass Workers, Knife Grinders, Print Cutters, 
I/ace Operatives and Wire Weavers. The five hundred 
dollar fee of the Wire Weavers is used as a prohibitive 
tariff particularly to keep out weavers from England and 
Scotland. The last foreign weavers were admitted in 
1906 on payment of the special fee. The Lace Operatives 
raised the initiation fee for immigrant workmen in 1908 
in order to discourage foreigners skilled in the trade from 
migrating to this country. The local unions which im- 
pose increased fees upon immigrants in the port cities 
seek to protect themselves against foreign workmen. 

(3) The ordinary preliminaries to admitting candidates 
to union membership are a report of an investigating com- 
mittee and a vote of the local union. Seven national 
unions prescribe that immigrant workmen may be ad- 
mitted only upon the approval of the national officers or 
by vote of a national executive board or of the entire 
membership of the union. The Brewery Workmen require 
that the names of all immigrant candidates shall be sent 
to the national officers for the purpose of obtaining in- 
formation as to their standing from the brewery workers' 
union in the country from which they came. The Ameri- 
can Federation of Musicians requires that the local unions 
shall not admit musicians who have been imported by an 
agent, musical director, or employer unless the national 
executive board sanctions their admission. The United 
Hatters authorize the national secretary alone to grant 
cards of admission to immigrant workmen. 



303] F. E. Wolfe 21 

The unions in the glass trades have constantly opposed 
the immigration of foreign glass workers. The Window 
Glass Workers in the early eighties endeavored to form 
an international union to include all workers in the trade 
in the world, chiefly for the purpose of adjusting the 
supply of workers to the needs of each country. This 
federation maintained its existence for several years, but 
ceased during the nineties. The policy of the union 
toward immigrant window glass workers, however, con- 
tinued one of exclusion. In 1899 the union in a com- 
munication to the Belgian union of window glass workers 
discouraged tradesmen from coming to the United States 
and advised them that they could not secure work here 
and that they could not join the union. In that year a 
rule was also adopted excluding foreign-born workmen for 
a period of five years. Since 1904 such workmen must 
have been residents for five years, and must be citizens to 
gain admission unless by special permission of the execu- 
tive board. The union requires that all applications for 
admission must pass the board. The concurrence of the 
national board is necessary to make an election to mem- 
bership legal. 

At each annual session of the Glass Bottle Blowers' 
Association since 1892 provision has been made for the 
exclusion of immigrant blowers during the succeeding 
year, unless in the judgment of the national president and 
executive board their admission may be deemed necessary. 
Applications of foreign workmen desiring to enter the 
trade are made to the national officers or to the associa- 
tion in session. During the last five years no foreigners 
have been admitted. The Flint Glass Workers in 1889 
provided that a foreigner who wished to become a member 
of the union should be proposed by a member in good 
standing in a local union, and if elected by a majority 
vote of the trade he was to be admitted. In 1902 the 
names of two "foreigners" were voted upon favorably by 
all the local unions. 



22 Economic Seminary [304 

The requirement that the application shall be passed 
upon by national officers or by vote of the members of the 
national union, makes admission more difficult than the 
ordinary method, on account of the delay involved. On 
the other hand, the national officers, executive board or 
entire membership usually act with a view to the best 
interests of a union. The national control of the admis- 
sion of immigrant applicants affords greater effectiveness 
and convenience in dealing with a problem which concerns 
a union as a whole. The Brewery Workmen apparently 
seek to hold to account foreign workmen who have 
opposed unionism in their native land. The American 
Federation of Musicians desires to eliminate the compe- 
tition of foreign musicians who have been imported to 
work at lower wages. The national union is better quali- 
fied than the local unions to determine when this class of 
musicians should be admitted and to what extent they 
should be excluded in the interest of the federation. The 
unions of the glass trades seem to have employed the 
method of national control in order to exclude foreign 
workmen. Their policy has generally been opposed to an 
influx of foreign glass workers. The national unions seek 
to adjust the number of members to the needs of the 
trades for workmen. In order to accomplish this aim it 
is necessary that the admission of foreign workmen should 
be under national control. This control has tended prac- 
tically to keep out all immigrants. 

(4) Immigrants who hold certificates of membership in 
a foreign union are granted favorable terms of admis- 
sion by certain unions. The Cigar Makers, Molders, 
Machinists, Bakery and Confectionery Workers, and Boot 
and Shoe Workers admit without initiation charge or 
restriction immigrants who present paid up membership 
cards from a foreign union. The Painters and Decorators 
on the payment of a small fee admit immigrants who 
present cards showing them to have been in good standing 
in a foreign union for two years. The United Hatters 



305] F. E. Wolfe 23 

exclude foreign hatters who do not hold credentials from 
a recognized union. Those who show proper proof of 
previous membership are required to join within three 
months after arrival. On the other hand, a large number 
of unions have never made provision for accepting immi- 
grants who present foreign union cards. The Bricklayers 
and Masons in 1908 refused to adopt such a provision. 
The Wire Weavers, Lace Operatives, Print Cutters, Win- 
dow Glass Workers and Glass Bottle Blowers also do not 
exchange membership cards with foreign unions. 

Ordinarily, the purpose of the requirement that foreign 
workmen should present paid-up membership cards from 
a foreign union seems to be to secure proof that the work- 
men are competent. The Brewery Workmen, and Painters 
and Decorators require cards showing the members to 
have been in good standing one and two years respectively, 
otherwise admission may not be secured by presenting a 
card. In some unions, however, the card is more than a 
mere certificate of competency. An exchange of mem- 
bership cards between unions of different countries is 
prompted by a sentiment of unity in the labor movement. 
The Hatters specifically exclude immigrants without 
cards. The Potters in 1905 adopted the policy of ex- 
cluding foreign workmen without membership cards on 
the ground that "the influx of foreign workmen into the 
pottery industry is an injury to the members of our 
craft." 



24 Economic Seminary [306 



THE INTRODUCTION OF THE OWENS AUTO- 
MATIC BOTTLE MACHINE 

By A. B. Morton 

The Owens machine differs widely from the glass blow- 
ing machines which preceded it. These machines had 
been only semi-automatic, that is, while they made pos- 
sible a lower cost of production, their successful opera- 
tion required the employment of skilled glass workers, 
who could only be obtained from the membership of the 
unions. Each improvement in the machines did some- 
thing to reduce the need of employing expensive labor; 
but it was not until the introduction of the Owens ma- 
chine in 1905 that complete success was attained. The 
Owens is the acme of machine development in the glass 
industry, because it entirely eliminates both the blower 
and presser. It requires merely a mechanic's super- 
vision. 

The following table shows the number of Owens ma- 
chines introduced in each year from 1905 to 1910 in- 
clusive : 

1905 1 1908 36 

1906 8 1909 49 

1907 18 1910 65 

These figures, however, understate the rapidity with 
which the Owens, or, as it is popularly designated, the 
"Automatic," has been introduced. The first of the ma- 
chines had only six arms (each arm containing a receiv- 
ing and a finishing mould), while the later forms have 
from eight to ten. Moreover the field of activity of the 
machine has been greatly enlarged so that now it makes 
beer and catsup bottles, milk land fruit jars, besides 
many other kinds of liquor bottles. 

The "Automatic" first received attention from the 
Glass Bottle Blowers' Association at the convention of 



307] A. B. Morton 25 

1904. President Hayes then outlined a comprehensive 
plan for dealing with the machine. He strongly ad- 
vised the union: "(1) to bring under the jurisdiction of 
the Association all bottle-makers, blown or machine, 
thus enabling us when necessary to further reduce the 
hours or divide the work; (2) to stop all legislation 
which would create a surplus of hand-blowers; (3) if 
hand-workers can not find work, to establish a three- 
shift system with a Saturday half-holiday, which will 
afford a wide employment even if it involves a sacrifice 
on the part of the membership in general; (4) not to 
undertake a strike against non-union factories because 
this will throw a large number of men out of work and 
imperil the chances of employment for our own mem- 
bers." There was, however, no legislative action taken 
on the subject other than the passage of a resolution 
conferring upon the president and the executive board 
discretionary power to deal with all kinds of machinery. 

The possible effect of the "Automatic" was not fully 
realized until the convention of 1906. The President then 
appointed a special committee to consider the Owens ma- 
chine. Local union No. 60 submitted for adoption the 
following resolution "Resolved that during the blast of 
1906-07 no member of our Association be allowed to 
work for any firm that persists in said practices," (i. e., 
the use of the machine). That the Association recognized 
the folly of direct opposition is attested by its rejection 
of this resolution. This special committee concurred in 
the suggestions laid down previously by President Hayes, 
namely, organization of all classes of bottle makers, the 
prevention of a surplus of workmen, and the three-shift 
system. It furthermore advised the discussion of the 
subject at the meetings of local unions. 

The Glass Bottle Blowers' Association was coming to 
realize that the position of the workmen had undergone 
radical changes. With the rise of the machine the As- 
sociation could no longer assume the same position in 



26 Economic Seminary [308 

collective bargaining which it had formerly held. Hith- 
erto labor had been the principal element in the cost of 
production and the union could enforce the concession 
of high wages and favorable working rules. The opera- 
tion of the Owens machine was beyond union regulation 
and the possibility of its extension was increasing. The 
union manufacturers, who did not enjoy the benefits of 
the invention, were making requests of the Associa- 
tion that endangered the standards of its membership. 
Thus the position of the union was rendered defensive 
rather than progressive. The organization had to seek 
to preserve the interests of its membership even if its 
policy entailed a handicap upon union employers. In 
this connection various plans have been proposed or at- 
tempted for the practical solution of the machine prob- 
lem: 

(1) The working day should be divided into three di- 
visions of 7 or 8 hours instead of the regular two shifts. 
The gradual adoption of this scheme would eliminate 
the evil of unemployment. This proposal at first met 
with opposition from the members because it meant a 
decrease in wages, but the President finally secured its 
endorsement. However, the real opposition has come 
from the employers who claim that the present system 
of manufacture is not adapted to such division of work. 
The experiments which have been made have been only 
partially successful. 

(2) The union has attempted to curb the "Automatic" 
by subsidizing the Johnny Bull machine — a semi-auto- 
matic device. It has sought by establishing a low wage 
scale for this machine, which requires three skilled opera- 
tors, to allow its promoters to compete successfully with 
the Owens and to secure a field for skilled labor. This 
special scale has created much dissatisfaction among 
hand-blowers. Special arrangements have also been 
made between the owners of other semi-automatic ma- 
chines and the union by which the summer-stop has been 
abolished. 



309] A. B. Morton 27 

(3) There has been a noticeable tightening in the rules 
limiting the number of apprentices. The Association 
has endeavored to obtain a decrease in the number of 
apprentices so that there would be fewer young mem- 
bers to take the places of the older. This policy is illus- 
trated in the increasing ratio of apprentices for ma- 
chine work, and in the entire abolition of apprentices 
for the last two years. 

(4) Certain other schemes such as the use of a union 
label, the establishment of co-operative factories and 
selling agencies, have been suggested as possible solu- 
tions of the machine problem. None of these ideas have, 
however, received the support of the union because of 
their slight promise of success. 

One of the most serious conditions which the Glass 
Bottle Blowers' Association has to face is the continual 
demand for reductions of wages. The employers claim 
that the competition of the machine necessitates such 
reductions. The union has taken the position that the 
hand producers must produce statistical evidence of the 
extent of such influence on the market prices. The mat- 
ter is then discussed by the wages committee which 
finally decides what shall be the proper concession. 
Great difficulty has arisen from the explicit orders given 
by the convention to allow no reduction, and this un- 
compromising position has created much discontent 
among the manufacturers. 

The union has also felt the influence of the "Auto- 
matic" in demands for the abolition of the summer-stop. 
This benefit has long been enjoyed by the members, who 
are thereby permitted to discontinue their work during 
the months of July and August. Although the manu- 
facturers have recently succeeded in obtaining its aboli- 
tion for the machine department, the opposition to a 
like concession in the hand-blowing branches has up to 
the present proved too strong. 



28 Economic Seminary [310 

In summarizing the attitude of the Glass Bottle Blow- 
ers' Association toward the Owens machine, we may say 
that the union is perfectly aware of its powerlessness to 
control this factor, but is attempting to protect the in- 
terests of its members by offering compensatory advan- 
tages to the union employers who use hand blowers and 
semi-automatic machines. These concessions are in- 
tended to make it possible for union factories to com- 
pete, without seriously jeopardizing the working condi- 
tions and wages of the members. 



THE INTRODUCTION OF THE PENITENTIARY 
SYSTEM IN MARYLAND 

By A. O. Mullen 

The Maryland Penitentiary was completed and opened 
for the reception of convicts in 1811. Penitentiaries had 
already been established in Pennsylvania, New York, 
Virginia, Massachusetts and Vermont. While there is no 
doubt that the successful operation of prisons in these 
states had some influence upon the legislators of Mary- 
land in leading them to establish a penitentiary, the es- 
tablishment of the system in Maryland was apparently 
due to an independent movement. It was probably re- 
vulsion of feeling from the severe criminal penalties of 
the colonial days which led in 1793 to the employment 
of criminals on the roads of Baltimore County and on 
the streets and basin of Baltimore Town. This system 
in 1811 was replaced by the penitentiary system. 

In a report on the penitentiary system in the United 
States, prepared under a resolution of the " Society for 
the Prevention of Pauperism in the City of New York," 
in 1822 is to be found this paragraph: "The Peniten- 
tiary System in the United States was the offspring of 
this country and established on the broad principles of 
humanity. It was believed by its founders, that san- 



311] A. 0. Mullen 29 

quinary punishments were not the most subservient to 
the ends of criminal justice, and that a system of laws 
that would tend to give a moral dominion over the mind 
and bring it to a sense of its errors and turpitude, would 
prove more efficacious in preventing offences, than severe 
corporeal inflictions; that a system of laws which should 
prescribe confinement, hard labour, and moral discipline 
and instruction, would accomplish this purpose." In 
the same report Mr. Daniel Chipman, M. C. from Ver- 
mont makes the statement that "the penitentiary system 
was introduced into the United States when there was 
a rage for improvement." 

But whatever may have been the dominating motives 
which finally resulted in the establishing of the Mary- 
land Penitentiary; whether it was due to a revulsion of 
feeling at the brutality of some of the penalties, or to 
repugnance to seeing convicts at work on the roads, 
streets and in the basin, or to the desire to provide a 
way whereby they could be made to earn sufficient with 
which to maintain themselves while under duress. The 
sequence of events which led to the establishment of the 
Maryland Penitentiary is good evidence of the ideas 
which were uppermost in the minds of the legislators of 
those days. 

On May 8, 1754, Governor Sharpe in his address at 
the opening of the Maryland legislature said: "The ex- 
cessive Charge and Burthen this Country is at present 
subjected to, by the great Increase of Pensioners in sev- 
eral of our Counties, I believe, might be hinted at, as 
calling for, and capable of, a Remedy; if it be truly rep 
resented, that the Distribution of the great Sums, an- 
nually collected for the Relief of the Poor, as it is now 
made, instead of being an Encouragement to and Re- 
ward of Industry, proves too frequently an Incitement 
only to Debauchery and Idleness." Two days later in 
transmitting a copy of the address to Lord Baltimore, 
Governor Sharpe wrote that he intended to recommend 



30 Economic Seminary [312 

"the building of work houses in every county for the re- 
ception of vagrants and such as apply for relief which 
would in good measure oblige them to labor for their 
maintenance." 

Under date of December 10, 1754, Calvert wrote to 
Governor Sharpe as follows: "Of County Work Houses 
you note for vagrants. My Lord approves well of such 
a law, care being taken in the formation thereof to hin- 
der that the persons employed make not the staple 
manufactures of Great Britain, from Produce of Mary- 
land, as it will occasion a petition to parliament against 
such provincial manufacture. The mother country will 
not suffer prejudice by loss of supply to her colonies 
and by her traffic especially in cloth to foreign mar- 
kets." 

Two things are noteworthy in this correspondence. 
First, that by having workhouses Governor Sharpe 
hoped to adjust matters so that paupers and vagrants 
would in part at least maintain themselves, and second, 
that at the very dawn of correctional productive labor 
there appeared the fear that its products might com- 
pete with the extra institutional product. At that time, 
however, it was the English manufacturer who viewed 
the movement with anxiety, while today the agitation 
against institutional labor is chiefly from the labor 
unions. 

The suggestion of Governor Sharpe in 1754 seems to 
have borne fruit in 1766, for in that year the legislature 
authorized the building of workhouses and almshouses 
in Anne Arundel, Prince George's, Worcester, Frederick 
and Charles counties. Institutions of the same kind 
were authorizd for other counties in the State from time 
to time. They were to be maintained by a tax not ex- 
ceeding fifteen pounds of tobacco for three years by the 
poll on each and every one of the taxable inhabitants of 
the county in which they were located. The almshouse 
and workhouse parts were to be separate although they 



313] A. O. Mullen 31 

might be in the same building. The administration of 
these institutions was vested in a board of five trustees 
whose tenure of office was for life or until they moved 
out of the county. Vacancies were to be filled by the 
remaining trustees from among the better sort of in- 
habitants of the county, but trustees so chosen were not 
to be blood relatives of the trustees who made the selec- 
tion. The trustees were invested with the authority to 
make and ordain whatever laws, orders and rules would 
best subserve the purpose of relieving and setting the 
poor to work and for the punishing of vagrants, beg- 
gars, vagabonds and other offenders. They were also to 
buy sufficient beds, bedding, working tools, kitchen uten- 
sils, cows, horses and other necessities for the use and 
employment of the poor, the vagrants, etc. Accounts of 
all their transactions were to be kept which together 
with the vouchers, etc., were to be submitted to the jus- 
tices of the several counties at the November term of 
court. 

Two years later it was enacted by the legislature that 
the trustees were to meet annually and elect officers, 
the chief of whom was to be an overseer. This overseer 
was to keep an accurate list of all persons committed 
to his institution as well as accounts of all the transac- 
tions of the same, such as expenses attending its main- 
tenance and support and money received from the sale 
of the produce of their labor; these accounts were to be 
submitted to the trustees four times a year. The over- 
seer was to compel the poor, the vagabonds, etc., to work 
if they were able, and was to sell the product and ap- 
ply the money received from the sale to their mainten- 
ance and support. There appears to have been no radical 
departure from this system for the next twenty-five 
years. 

In 1793 we find the first step towards a centralization 
of delinquents. In that year the legislature bestowed 
upon the judges of the courts in Baltimore County the 



32 Economic Seminary [314 

power to use their discretion in passing sentence upon 
major offenders, who might be convicted of specified 
crimes. They might either inflict such penalties as the 
law had previously provided or might condemn the con- 
victed persons to serve for any time in their discretion, 
not exceeding seven years in the case of free male per- 
sons, male servants or apprentices, or fourteen years in 
the case of slaves, on the public roads of Baltimore 
County, or in making, repairing, or cleaning the streets 
or basin of Baltimore Town. 

It was also enacted in the same law, that the general 
court and every county court of the State, except the 
county court of Baltimore County, should have the same 
power to pass judgment in the same manner for the 
same crimes. If the justices wished to condemn the one 
convicted to serve and labor, the court before whom they 
were convicted was to value them. If the person con- 
victed in the general court was a slave the valuation 
was to be paid to the owner by the treasurer of the 
western or eastern shore wherever convicted; if in a 
county court, the valuation was to be assessed in the 
county assessment, and paid to the owner by the collec- 
tor thereof. If the person convicted was a free person, 
then the general court could order any such free per- 
son convicted in it, at the expense of the State, and 
if a county court, at the expense of the county, to be 
conveyed and delivered to the person or persons ap- 
pointed to take care of criminals in Baltimore County. 
These persons were required to receive them and to do 
with them the same as with criminals convicted in Bal- 
timore County. The courts outside of Baltimore County 
were however to pay £5 for every criminal so sent. 

Free females, female servants or apprentices who were 
convicted of specified crimes in Baltimore County were 
to serve and labor in some place of confinement. The 
administration was to be of the same kind as for males 
except that the females were to be assigned daily tasks 



315] U. H. Hounmrh 33 

in picking of oakum, cultivating or beating and hack- 
ling hemp or flax; manufacturing wool, hemp or flax; 
knitting, sewing, or other similar employment. Females 
from counties other than Baltimore County were to be 
confined in the workhouses of the respective counties, 
and the several courts were to make provisions and 
regulations for their employment. 

This was the status of convict labor in Maryland in 
1804, when the resolution was passed by the legislature 
to erect the Penitentiary. Indeed, no actual change took 
place until 1811, when the Penitentiary was completed 
and opened for the reception of criminals. After the 
Penitentiary was completed the courts sentenced con- 
victed criminals to that institution. The working of 
convicts in public gradually disappeared as their terms 
expired, or they were transferred at their own request 
from the public roads, streets or basin to confinement in 
the Penitentiary. 



THE EARLY HISTORY OF THE CIGARMAKERS' 

UNION 

By Marie H. Hourwich 

In 1835, during the agitation for the ten-hour day, the 
cigarmakers of Philadelphia decided to organize for the 
purpose of securing a reduction in working hours. The 
following resolution was presented by a committee of 
cigarmakers and adopted on June G, 1835: 

"Resolved, that we organize in order to regulate the 
prices of work, so as to earn a sufficiency on the prin- 
ciple of 10 hours labor. . . . That we will support 
all strikes as far as practicable, to prevent oppression 
to journeymen and others, and aid in carrying the prin- 
ciples of reformation fully out. . . . That the pres- 
ent low wages hitherto received by the females engaged 
in segar making, is far below a fair compensation for 



34 Economic Seminary [316 

the labor rendered. . . . That we recommend them 
in a body to strike with us, and thereby make it a mu- 
tual interest with both parties to sustain each other in 
their rights." 

No permanent organization appears, however, to have 
been in existence among the cigarmakers until the fifties, 
when ,the rapid industrial expansion developed among 
wage- workers a tendency toward organization, and unions 
began to spring up all over the country. Prior to the civil 
war slave labor entered into competition with free labor 
in the manufacture of cigars, and the abolition of slav- 
ery also gave an impetus to the organization of labor in 
the cigar trade. 

In 1851 a cigarmakers' union was organized in the 
city of Baltimore. Baltimore was at that time the cen- 
ter of the trade, and the Baltimore union occupied a 
leading position in the development of trade unionism 
among the cigarmakers in the United States. Unions 
were soon formed in several other cities. 

Although fairly successful in enforcing their regula- 
lations locally, the unions could not exercise control 
over the trade as a whole since there was no unity of 
organization. The advisability of forming a central 
body was evident from the earliest days. 

In 1854 the cigarmakers of Troy, Syracuse, Rochester, 
Utica, Albany and Auburn decided to call a state con- 
vention with the objects (a) of establishing a uniform 
bill of prices in the State of New York and (b) of regu- 
lating the apprenticeship system. The convention was 
held in Syracuse, May 10-11, 1854, but no permanent 
organization was created. Nevertheless, a price list was 
drawn up and thereafter adhered to in various cities, 
and the employment of non-union labor was resisted in 
every possible way. In 1856 a state convention was held 
in Syracuse, N. Y., in which employers also took part. 
The aim was to equalize prices for labor throughout the 
state. It was proposed to make f 5.00 a thousand a uni- 
form price for the state. 



317] M. H. Hourwich 35 

On June 21, 1864, a national convention was held in 
New York. The convention was attended by delegates 
from Pennsylvania, New York, New Jersey, Ohio, Con- 
necticut, Massachusetts, Rhode Island and Michigan. It 
was believed that "the objects sought to be attained — 
the welfare of the cigarmakers as workingmen — can be 
better attained by being under one head." The national 
convention organized as the National Cigar Makers' 
Union, and later in 1867, when unions were organized 
in Canada, the name was changed to International Cigar 
Makers' Union. 

The number of local unions as well as their member- 
ship grew rapidly. The convention of 1865 was attended 
by 24 delegates representing 21 unions with an aggre- 
gate membership of something above 1,000. The num- 
ber of local unions, as well as their membership, fell off 
during the Civil War, but after the war it rose again. 
In 1865-66, 37 new unions were organized and in 1873 
the Executive Board reported the existence of 84 unions. 
Between 1875 and 1877 the International union was in 
a critical condition. Trade was dull, and the unions 
could exercise little control. Many unions dissolved; of 
the 84 unions, which were in existence in 1873, only 50 
were left in 1877 and those were reduced in numbers. 

At the Rochester convention of 1877, 17 unions were 
represented with a membership of 1016. This was the 
low watermark reached by the International union since 
its organization. Thereafter, trade began to improve in 
some of the largest centers of the industry, giving an 
opportunity for an increase of wages. Two years later, 
at the Buffalo convention of 1879, the organization of 
18 new unions with 1250 members was reported. The 
membership of the older unions grew in proportion. 

The earliest cigar makers' unions were composed 
largely of foreign-born workmen. The influx of Ger- 
mans was particularly strong, and they constituted a 
large proportion of the membership of many of the 



36 Economic Seminary [318 

unions. The number of Bohemians was also large; in 
February, 1873, 8,000 immigrants were reported in the 
cigarmaking industry in New York. At first many Bo- 
hemians who had a knowledge of the German language 
belonged to German unions. Later separate unions were 
organized ; thus in 1876 a Bohemian union of 90 mem- 
bers was organized in New York. In 1877 the existence 
of a union of Spaniards and Cubans is recorded in 
Philadelphia. 

The main object in the formation of the national union 
was the consolidation of the different organizations of 
the trade into one body: "to facilitate the thorough or- 
ganization of the trade it represents for the mutual bene- 
fit and protection; to secure co-operation whenever it 
may be required; and to decide all differences that may 
arise between local unions." "The organization" was to 
"consist of delegates elected from unions composed of 
practical cigarmakers, that acknowledge the jurisdiction 
and authority of the national union." 

With the organization of the National union a good 
deal of legislative power was shifted from the local 
unions to the national organization. The national union 
took upon itself the regulation of some important mat- 
ters affecting the trade as a whole, and left to the local 
unions the supervision of purely local affairs. The 
powers of national and local unions were not, however, 
carefully distinguished until 1873 when the convention 
drew a clear line between local and national jurisdic- 
tion. Local unions were authorized to pass upon the 
qualifications of membership, and to fix dues and as- 
sessments. They also had power to frame regulations 
concerning the bill of prices and working hours. The 
jurisdiction of the national union was confined to mat- 
ters of interest common to all local unions, as for in- 
stance the granting of traveling cards, and the benefit 
system. Its chief concern was to preserve the integrity 



319] M. H. Hourwich 37 

of the national organization and to settle all difficulties 
arising between the local unions. 

Although as a rule local unions benefited by joining 
the national union we find instances when they did not 
care to come under its jurisdiction. Coming under the 
jurisdiction of the national union meant abiding by all 
its rules; some local unions, however, did not agree with 
all the principles the national union was endeavoring 
to enforce. The Baltimore union, which had played such 
an important part in the early history of the cigarma- 
kers' union, did not for a long time join the national 
union, for the reason that it objected to the system of 
rolling and filler breaking. Similarly, the Cigarmakers' 
Protective Association of Cincinnati was opposed to fe- 
male labor; whereas the constitution of the national 
union specifically provided that "no local union shall 
permit the rejection of an applicant on account of sex, 
color, or system of working." 

In 1879 the national constitution was revised and 
amended. The new constitution contained many new 
features of vital importance, similar, it was claimed, 
to those in successful operation among the strongest 
trade unions. Theretofore the International Union had 
been a combination of local unions, very loosely con- 
nected. The new constitution placed them on an equal 
basis, with equal dues and initiation fee, and provided 
for a system of loans to members travelling in search of 
employment. The new constitution also provided for 
equalization of funds. Before this a member who had 
removed from its jurisdiction lost his right to its bene- 
fits. As a result the unions whose members left had 
grown in financial strength, and those that received new 
members by travelling cards had become weaker. The 
chief effect of equalization was that a member leaving 
the jurisdiction of a local union did not lose his share 
of benefits. 



38 Economic Seminary [320 

Finally, a very important feature of the new consti- 
tution was the democratization of the government of the 
national union by extending legislative power to the in- 
dividual members. Theretofore, local unions had had 
the privilege of adopting or rejecting the constitution 
as a whole; the new constitution gave an opportunity 
to every local union to vote separately on every article. 

The organization of the national union according to 
the plan suggested by the new constitution proved very 
successful. The year 1879-1880 showed a remarkable 
growth, both in the number of unions and in member- 
ship. 



THE INFLUENCE OF LABOR UNIONS UPON LEGIS- 
LATION IN MARYLAND 

By H. Wirt Steele 

Almost a half century elapsed from the time of the 
earliest organization of labor in Maryland before any 
definite effort was made by such organizations to secure 
remedial legislation. The earliest organizations of la- 
borers were along trade lines and their activities were 
confined to efforts for the improvement of conditions 
in their respective trades. The movement for legislative 
action which was at the time being felt throughout the 
country began to manifest itself in Maryland in the late 
seventies of the last century. It took form in the or- 
ganization of the Knights of Labor. The first local as- 
sembly of the Knights in Baltimore was organized in 
May, 1878. The first district assembly was formed in 
1880 and comprised five locals. It had jurisdiction over 
all of Maryland except the mining counties of Allegany 
and Garrett. Most of the activities of this order were 
carried on secretly, and even its existence was not pub- 
licly admitted until 1881. A building league was estab- 
lished within its membership in 1883, that the order 



321] H. W. Steele 39 

might have a public excuse for existence, and in order 
that its main work might be carried on secretly. At a 
later date this building league became a branch of the 
American Federation of Labor. 

By 1883 the strength of the Knights of Labor was 
becoming considerable, and we begin to find frequent 
mention in the newspapers of the "labor vote." The 
Knights were quietly pressing their claims for political 
recognition and for relief from alleged abuses, and at 
the session of the General Assembly in 1884 the passage 
of a bill creating a State Bureau of Labor Statistics was 
secured. From 1884 the order experienced a remark- 
able growth, but it does not appear to have had much 
political influence. It lacked definiteness of purpose and 
this militated against its efficiency as an agency for se- 
curing legislation. Many of the large mixed assemblies 
which had come into existence and flourished for a num- 
ber of years broke up into trade assemblies. 

There was, however, a group of able men in the 
Knights of Labor who sought to stop this disintegrat- 
ing process and to uphold the original ideals of the Or- 
der. The district assembly maintained a monthly lec- 
ture course and also a school, which all officers of local 
assemblies were compelled to attend. At such meet- 
ings there were discussions and addresses concerning 
such subjects as "The Eight Hour Day," "Co-operation," 
"Eights of Man," and "Effects of Machinery." With the 
development of this side of their work, the Knights be- 
gan to exert more political influence. They succeeded 
in having a number of bills introduced in the legisla- 
ture, but without definite results. The more noteworthy 
of these bills provided for a Saturday half-holiday and 
for woman's suffrage. One bill forbade the appropria- 
tion of state money for the militia; another prohibited 
the hiring out of convict labor; and still another with- 
drew state aid in collecting private debts. The only suc- 
cessful piece of legislation with which the Knights ap- 



40 Economic Seminary [322 

pear to have been definitely identified at this time was 
the Australian Ballot Law, which was mangled in the 
legislature by the exemption of seven counties from its 
operation. 

In 1886, the State Labor Statistician noted that there 
were local assemblies of the Knights of Labor in Gar- 
rett, Allegany, Washington, Howard, Harford, Balti- 
more, Cecil, Frederick, and Anne Arundel counties, as 
well as Baltimore city. He gives the number of mem- 
bers that year as 16,000 with 11,000 more men included 
in trade unions. There was, probably, considerable du 
plication in these estimates. The friction which arose 
between the Knights and the trade unions in that year 
was responsible for a great weakening in the strength 
of organized labor. 

By 1887, both the Knights and the trade unions had 
begun to register complaints of abuses and suggestions 
for legislative remedies with the Bureau of Industrial 
Statistics. Most of these affected specific trades or 
crafts, rather than labor as a whole. The coopers, or 
ganized as a Trade Assembly of the Knights of Labor, 
complained that the practice of using old barrels for the 
packing of new flour had grown to be a menace to their 
trade and an injury to the public health. The associa- 
tion of steam engineers made a plea for a law com- 
pelling the employment of licensed engineers. The 
Knights of Labor at Havre de Grace, composed of rail- 
road employes, duckers, and fishermen, asked for changes 
in the laws governing hunting and fishing in the waters 
of Kent and Queen Anne counties. The horseshoers made 
their first appeal through the Bureau for a law requir- 
ing the examination and licensing of all journeymen 
working at their trade. This law was later passed. The 
organized musicians represented that their profession 
was seriously injured by strolling bands and requested 
the imposition of a license fee. The pattern makers 
asked for the enactment of laws requiring the weekly 



323] H. W. Steele 41 

payment of wages and an eight-hour day, suggesting as 
the first step towards the latter that the law make fifty- 
three hours a legal week's work — that is, nine hours for 
five days and eight hours for Saturday. Employes of 
the Baltimore and Ohio Railroad Company, although not 
organized either as a trade or as an assembly of the 
Knights of Labor, registered a protest through the Bu- 
reau against the Baltimore and Ohio Employes' Relief 
Association, which had been established by the company 
under an act of the legislature of 1882 and had been 
gradually extended to embrace insurance, pension, sav- 
ings, library, and building features. They maintained 
that although no such provision was contained in its 
constitution and by-laws, in practice membership in the 
association had become compulsory. 

The ill feeling existing between the Knights of Labor 
and the trade unions became acute in 1892, and through 
the influence of the latter the law creating the Bureau 
of Industrial Statistics was repealed and a new law 
creating a State Bureau of Statistics and Information 
was passed. According to the subsequent reports of the 
Chief of the Bureau, however, the trade unions failed 
to co-operate with him, while the Knights of Labor re- 
sponded to his requests for information. 

During the business depression of 1893, 1894, and 1895 
the strength of organized labor suffered a serious de- 
cline, particularly in certain trades. Baltimore Brick- 
layers' Union No. 1, organized in 1864, had up to the 
time of the depression a strong membership. A decided 
falling off in numbers roused the union to demand cer- 
tain reforms. The union was particularly interested in 
securing the passage of an employers' liability act which 
would give the craft better protection in the matter of 
injury from accidents. It was also desirous of securing 
certain amendments to the mechanics lien law. The 
carpenters, granite cutters, block pavers, stone cutters, 
and the stone masons were in favor of the same meas- 



42 Economic Seminary [324 

ures. The furniture workers declared in favor of com- 
pulsory arbitration in labor disputes and a compulsory 
education law. The cigarmakers favored a compulsory 
education law; they were also working for a law to pro- 
tect their label. The boot and shoemakers made an ef- 
fort in 1896 to secure the abolition of the contract labor 
system. The printers, representing the oldest organi- 
zation of labor in the State, apparently took little or no 
interest in labor legislation. The bakers secured the 
passage by the Assembly in 1894 of the sanitary bake- 
shop inspection law for Baltimore city. 

Following a notable strike, in which practically all of 
the miners in the George's Creek region of Western 
Maryland were involved, the Chief of the Bureau of Sta- 
tistics and Information proposed the establishment of a 
court of arbitration to consist of three persons; one to 
be of the employing class, one of the employee class, 
and the third to be the Chief Judge of the Supreme 
Court of Baltimore city. This board was to have power 
to interfere in serious strikes, on application of either 
party interested. This proposal was supported by about 
three-fourths of the labor organizations of the State. It 
was not immediately successful, but the legislature did 
eventually provide that the Bureau of Statistics itself 
should organize a court of arbitration in any important 
labor dispute. 

The Chief of the Bureau of Statistics and Information 
in several successive reports following that of 1896 com- 
plained repeatedly of his inability to secure reliable in- 
formation from or about many labor organizations in 
the State. Numerically, organized labor was stronger 
by 1903 than it had been at any time since 1886. In 
1903 the barbers in Baltimore effected an organization 
for the express purpose of securing legislation affecting 
their trade. They prepared a bill, based on the rules of 
the Board of Health of New York city, and made a well 
directed effort to secure public sympathy for it. They 



325] E. W. Steele 43 

were successful in securing its passage but the law was 
soon declared unconstitutional. The effect of the agita- 
tion and publicity connected with this campaign, how- 
ever, was to close many of the worst barber shops and 
to better conditions in many others. 

A State Federation of Labor was organized in 1906 
and adopted as its program the platform of the Progres- 
sive Labor Party, which had been organized in Baltimore 
a short time prior to the meeting. This platform called 
for: 

1 — A legal work day of not more than eight hours. 

2 — A child labor law. 

3 — A compulsory education law. 

4 — A law requiring sanitary inspection of all mines, tunnels, 
workshops, and dwellings. 

5 — Ownership in operation of municipal and all public utili- 
ties. 

6 — A law, national and state, prohibiting the use of the in* 
junction process in labor disputes. 

7 — The abolition of the contract system in all public work. 

8 — A law prohibiting the introduction of prison-made goods 
into this state from other states and requiring the stamping of 
those made in this state as prison made. 

9 — Extension of the provision of the Employers' Liability 
Law, so as to include all classes of employment. 

10 — Ballot reform which will prevent corruption, insure a fair 
count and punish bribe givers and bribe takers. 

11 — Adoption of the system of law-making known as direct 
legislation through initiative and referendum and the nomina- 
tion and election of United States senators by direct vote of the 
people. 

12 — A special street car fare rate, reducing the fare during 
the hours in the morning and afternoon when working people 
are going and returning from work. 

Of this formidable program, no part has since been 
enacted into law except the second and third demands, 
and these only partially. The child labor law does not 
apply to the counties of the State during the summer 
season, and the compulsory education law applies only 
to Baltimore city and Allegany county, and no attempt 
is being made to enforce it in the latter community. 



44 Economic Seminary [326 



THE INITIATION AND CONTROL OF STRIKES 

IN THE INTERNATIONAL CIGAR 

MAKERS' UNION 

By George M. Janes 

The methods of initiating and controlling strikes in the 
Cigar Makers' International Union since its organization 
iu 1864 have been marked by a continuous development 
in the direction of central authority. At the beginning 
many strikes were financed by small assessments pieced 
out with voluntary contributions, but on account of the 
limited aid which could be given many of them were 
unsuccessful. Due bills were issued by some local unions 
engaged in strikes and these were afterwards paid by the 
International Union. Two large and protracted strikes 
and lockouts which took place between 1869 and 1870 in 
New York City and Cincinnati, necessitating heavy assess- 
ments, endangered the International Union, which had 
then reached its greatest numerical growth preceding the 
industrial panic of 1873. In 1870 the organization had 
seven strikes, of which only two were successful. The 
expenditures amounted to $43,017. The two large lock- 
outs brought the International Union into financial em- 
barrassment, and it was unable to fulfill its obligations in 
the payment of the regular strike benefits. Worthless due 
bills were issued to members in lieu of cash. This was 
one of the causes that led to the dissolution of local 
unions and to the suspension of a large number of mem- 
bers. In 1869 the membership of the International Union 
was 5,800; in 1873 it had decreased to 3,771. At the 
Detroit convention in 1873 an article providing for an 
arbitration committee was inserted in the constitution. 
The fact that from 1871 to 1875 out of 78 strikes only 12 
had been successful, led President George Hurst to say 
in 1876 : "The disposition to strike on almost every occa- 



327] G. M. Janes 45 

sion has produced the greatest demoralization to our 
whole organization." 

Mr. Adolph Strasser was elected president of the Inter- 
national Union in 1877 and was succeeded by Mr. George 
W. Perkins in 1892 and much of the growth and success 
of the International has come through the dominant per- 
sonalities of these two men. President Strasser advo- 
cated restriction of strikes, the perfection of the organi- 
zation, and the accumulation of a reserve fund. The con- 
stitution was thoroughly revised in 1879 and many of the 
principles then adopted are found in the present one. In 

1884 an amendment was passed providing for the aban- 
donment of a strike if a successful outcome was unlikely. 
In spite of this, no success accompanied the effort to end 
a strike in Cincinnati in 1884-85 because the local com- 
mittee flooded the country with circulars containing mis- 
leading statements of fact. The Cincinnati strike cost 
the International Union about two hundred and twenty- 
five thousand dollars. During 1884, $143,547.36 were ex- 
pended for strike benefits at a cost of $12.62 per member, 
while the total cost per member for all benefits including 
strikes was $15.74. This led to the embodiment of an 
arbitration law in the constitution at the convention of 

1885 and provisions for making it more effective in 1886. 
In 1887 President Strasser said in his report: "Our 
unions have gradually recognized the necessity of dis- 
cipline and the enforcement of our laws governing the 
management of strikes. Independent strikes have become 
a matter of the past not to be revived or to be tolerated 
again.'' Various amendments concerning strikes were 
passed at the conventions of 1888, 1890, 1892 and 1893, 
but the entire constitution was put into substantially the 
form it has today at the Detroit convention in 1896. 

The moral and pecuniary support of the International 
Union is given only when the laws concerning strikes and 
lockouts have been complied with. The local union hav- 
ing a grievance must furnish a full and official statement 



46 Economic Seminary [328 

of such difficulty signed by three officers to the Inter- 
national President, who shall submit the same to the 
other officers of the Executive Board, and if after a full 
investigation the same is approved a circular is sent to 
the local unions ordering them to render assistance. In 
localities where more than one union exists action must 
be taken jointly and a majority of votes cast must decide; 
the application for strike or lockout must be signed by 
the joint advisory board and three officers of the union. 
Application to strike for an increase must state price 
paid and how much demanded, or if against a reduction, 
the prices paid and the amount of the reduction. Con- 
ditions as to number of members employed and unem- 
ployed, the length of time organized, and the number of 
members in the union when the application was made 
must be reported. Applications for strike or lockout 
must be read at a regular or special meeting of the union 
making application, and the union must report both the 
affirmative and the negative votes on all questions of 
strike. False statements in application by a local union 
are punishable by a fine of f 25 to be remitted to the Inter- 
national Union. A local union can appeal within fifteen 
days after an adverse decision has been rendered by the 
Executive Board to a general vote of all the unions. But 
every difficulty involving more than 25 members must be 
submitted at once by the International President to a 
vote of all local unions. A two-thirds majority of all 
votes cast is necessary to make a difficulty legal. The 
■tatement to the local unions must give the number of 
men already on strike in other localities and the condition 
of the funds per capita in addition to the statement of 
the local union wishing to strike. Three months must 
elapse after a rejection of a strike application before an 
application appertaining to the same case can be made. 
The vote of local unions on difficulties is in proportion to 
their membership: one vote from 7 to 50 members; two 
votes from 50 to 100 members, or fraction of not less than 



329] G. M. Janes 47 

75; three votes from 100 to 200, or fraction of not less 
than 160; and one additional vote for every 100 more. 
No votes on questions of strike, local or otherwise, not 
taken by secret ballot can be counted. 

Strikes are regarded, however, as a last resort when all 
efforts for amicable settlement have been exhausted. The 
local committee, the Joint Advisory Board in places where 
more than one union holds a charter, the Executive Board 
of the International Union when a lockout is threatened, 
and, finally, a special committee of one or two members 
of the International Union appointed by the Executive 
Board to arbitrate in conjunction with committee of the 
local union — provide the means for settlement. Strikes 
are also conditioned as to season, for no strike can be 
approved or sustained by the International Union for an 
increase in wages between the first day of December and 
the first day of April of any year, except in the States of 
California, Virginia, South Carolina, Tennessee, Georgia, 
Florida, Alabama, Mississippi, Louisiana, Texas, Oregon, 
and Washington. The no-strike season in the States 
named is from the first day of April to the first day of 
September of any year. This rule, however, does not pre- 
clude strikes against reduction of wages, or the truck 
system, or against the introduction of tenement-house 
work. 

The International agent or representative, who is ap- 
pointed by the International President whenever there is 
a strike or lockout involving more than fifty members 
in contemplation, represents the interests of the Inter- 
national Union. He attends all meetings of the com- 
mittee having the strike or lockout in charge, has power, 
when directed, to examine the books and papers of the 
union, and reports weekly or oftener to the International 
President and Executive Board. Unions refusing or not 
permitting the agent to perform these duties may have 
the benefits due them withheld by the International Presi- 
dent until their compliance is assured. An agent may be 



48 Economic Seminary [330 

displaced by another one by the International President 
or Executive Board. 

The assistance granted by the International Union 
begins on the day when the difficulty is approved by the 
proper authorities and is as follows : for the first sixteen 
weeks, f 5 per week, and f3 per week until the strike or 
lockout shall have terminated. A striker securing work 
and being discharged within fourteen days is entitled to 
his further benefit, but not if he is discharged after work- 
ing more than fourteen days. A member to receive strike 
benefit must be in good standing for at least three months. 
Members discharged for carrying out orders for their 
union receive the same assistance as strikers. A member 
prosecuted or arrested for carrying out the orders of the 
local union, if such order is not in violation of the Inter- 
national constitution, has such expenses paid by the Inter- 
national Union. A lockout when resistance to the same 
has been approved by the International Union is treated 
the same as a strike, but the benefit begins from the day 
the application has been mailed. No member or union is 
considered on strike unless said strike has been approved 
bj the proper authorities of the International Union ; this 
includes a reduction in wages. A complete weekly report 
must be sent to the International President by the secre- 
tary of any union on strike, signed by the president and 
full strike committee, itemizing expenditures, and report- 
ing such other facts as may be provided for in the blanks 
furnished. Failure to comply may result at the discre- 
tion of the International President after due notification 
in the withdrawal of further strike aid. A local union 
directed by the Executive Board to forward money to 
another local union and not complying within five days 
from date of said notice is subject to suspension. Unions 
out on an authorized strike have power to reject all travel- 
ing cards except those of sick members. 

An example of the settlement of a strike by arbitration 
is afforded by the Boston strike of 1906 which lasted three 



331] 2i. R. Whitney 49 

weeks and was settled through Messrs. Adolph Strasser 
and Willard S. Best, representatives of the International 
Union, in spite of much opposition by the local union. 
An appeal, however, to the votes of all the local unions as 
to the terms of the settlement was not taken. Another 
instance is where the committee went to the employer 
seventeen times before a settlement was finally effected. 
The duties of agents and arbitrators are defined in the 
constitution in a general way and much is left to their 
judgment. As stated editorially in the Cigar Makers' 
Official Journal : "It does not matter whether the agent 
or arbitrator agrees with the local strike committee or 
not. If capable and experienced he is supposed to lead 
and not to follow. It's his duty to stand by the Inter- 
national Union regardless of consequences; to protect 
the funds against waste and extravagance, and to main- 
tain its reputation for a 'square deal' with the union 
manufacturer." 



JURISDICTIONAL DISPUTES BETWEEN THE 
PLUMBERS AND STEAMFITTERS 

By N. R. Whitney 

The United Association of Plumbers, formed by the 
consolidation of a small number of previously existing 
local unions, was organized in Washington, D. C, Oc- 
tober 11, 1889. As its title indicates, it was intended 
to embrace workmen in the trades of plumbing, steam- 
fitting and gas fitting, although the membership through- 
out its history has been chiefly made up of plumbers. An 
effort was made to bring about an amalgamation or es- 
tablish a working agreement with the National Associa- 
tion of Steamfitters, which had been organized in New 
York, June, 1888, with a membership confined to steam- 
fitters; but this effort failed, since the Steamfitters in- 
sisted on maintaining the autonomy of their union. 



50 Economic Seminary [332 

The differences between the two unions first came be- 
fore the American Federation of Labor in 1898, when 
the Steamfitters applied to the Federation for a charter. 
This was opposed by the Plumbers on the ground that 
they had jurisdiction over the work claimed by the ap- 
plicants. A committee appointed by the Federation rec- 
ommended that a provisional charter be granted the 
Steamfitters under the following conditions, — that the 
Plumbers might retain their steamfitter members with- 
out interference from the National Association; that 
each organization should have complete autonomy, and 
that in towns where there was an insufficient number of 
fitters to form a local union of steamfitters, they might 
become members of the local union of Plumbers. 

About this time, the breach between the two unions 
was widened by a controversy concerning jurisdiction 
over sprinkler fitters. In New York a large number of 
men were engaged in installing sprinkler piping for fire 
protection. The Steamfitters decided that, since they 
had jurisdiction over pipe fitting they would take sprink- 
ler fitters into membership. The Plumbers also claimed 
jurisdiction over this work, and they also took sprink- 
ler fitters into membership wherever possible. 

The marking out of a practicable line of demarcation 
between the trades of plumbing and that of steamfitting 
is by no means an insurmountable difficulty. These dif- 
ferences might be minimized by the adoption of a work- 
ing agreement. The real ground of the contention is the 
demand of the Steamfitters for trade autonomy, on the 
ground that steamfitting is an entirely separate and dis- 
tinct trade, whereas the Plumbers argue that the inter- 
ests of the whole pipe-fitting industry are identical and 
therefore should be represented by a single association. 

In their struggle each organization seeks to impede 
the progress of the other by extending its jurisdiction 
over as large a field as is possible. By 1904, the United 
Association of Plumbers had enlarged its claims by add- 



333] N. R. Whitney 51 

ing to its previous title the words "sprinkler fitters and 
their helpers and general pipe fitters;" while the 1906 
constitution asserts jurisdiction over "all branches of the 
pipe-fitting industry." The Steamfitters claim jurisdic- 
tion over "steam, sprinkler, hot water and all power pipe 
fitting." 

The efforts to bring about the settlement of the bounds 
of jurisdiction between the two unions have covered a 
period of fifteen or twenty years. The methods dis- 
cussed have been amalgamation, the establishment of 
working agreements including minute specifications of 
the jurisdiction of each craft, a national interchange 
and recognition of cards, and a judicial tribunal com- 
posed of members from each society and one from the 
American Federation of Labor to hear and adjust all 
disputes. The Steamfitters refuse to consider amalga- 
mation; the Plumbers want no fixing of jurisdiction ex- 
cept such as they themselves may determine; and the 
judicial tribunal fails because it lacks the power to en- 
force its decisions. 

These disputes not only injure the unions involved and 
the labor movement in general, but they have frequently 
resulted in tying up large contracts, throwing many 
men out of employment, and causing great loss to em- 
ployers who were observing union rules. During the 
erection of the Baltimore American Building, for ex- 
ample, the contractor for the plumbing had a shop in 
which he employed steamfitters belonging to the Steam- 
fitters' National Association and non-union plumbers. 
The local plumbers' union, knowing that he could not do 
the work without using some of their men, and wishing 
to aid their own steamfitter members and, at the same 
time, to strike a blow to the members of the rival as- 
sociation, refused to allow any members of their union 
to work for the contractor until he discharged his In- 
ternational Association steamfitters and replaced them 
with United Association steamfitters. The contractor 



52 Economic Seminary [334 

had to submit. But the fight had only begun. The con- 
tractor for the steamfitting on the building was employ- 
ing International Association steamfitters, and these 
now refused to work with the United Association plumb- 
ers. The gas fitters, electricians, and painters joined 
them in a sympathetic strike and brought almost the 
whole work to a standstill. The employers who were 
not at fault lost heavily by the delay which lasted for 
several weeks. Finally the Plumbers were forced to with- 
draw their objections to the International Association 
steamfitters in the contractor's shop and they were re- 
instated. 



THE BEGINNING OF THE BALTIMORE STRAW 
HAT INDUSTRY 

By J. Luther Martin 

In the fall of 1865, G. O. Wilson, who was born January 
27, 1831, in Easton, Bristol county, Massachusetts, the 
heart of the "split straw" district, and who was then 
living in Foxboro, Norfolk county, Massachusetts, made 
an agreement with William C. Perry, who was in charge 
of the mechanical department of the Union Straw Works 
of Foxboro, Massachusetts, and Albert Sumner, a hat 
presser of the same works, to go into the manufacturing 
of straw hats in some place outside of Massachusetts. 
With this in view Mr. Wilson made a tour of the country, 
going south to Baltimore and as far west as the Mississippi 
River. 

They finally decided that Baltimore was the best place 
in which to start their enterprise. It was believed that 
many young ladies who had been forced by the Civil War 
to go to Baltimore in search of employment would furnish 
an excellent labor supply. They also found that the firm 
of Armstrong, Cator & Co., wholesale milliners of that 
city, had on hand a large stock of ladies straw goods of 



335] J. L. Martin 53 

undesirable patterns which they wished to have remade. 
This accumulation of old styles was also due to the Civil 
War, as that firm's business was chiefly with the Southern 
States. At this time a few cap makers in Baltimore did 
some work in the way of rebleaching and repressing the 
fine Tuscan and Leghorn hats; but no straw hats were 
made there. 

In February, 1866, G. O. Wilson, Albert Sumner, and 
William C. Perry began business in Brook's Old School, 
a building which had been used as a seminary for young 
ladies, located to the north of Lexington street and west 
of Charles street. Mr. Sumner remained only a few 
months, and the firm name became Wilson & Perry. They 
brought with them from Foxboro, Mass., twenty opera- 
tors — men and women. Their first work was to alter the 
old stock of Armstrong, Cator & Co. They took the 
bonnets, ripped them up, bleached the braid, sewed it 
into proper shapes, sized, bleached, blocked, pressed and 
wired them, just as they would have treated entirely new 
braid. Armstrong, Cator & Co. could afford to have this 
done because straw goods were very expensive at that 
time. In the fall of 1866, Wilson & Perry employed sixty 
young ladies to learn the business, and in the spring of 
1867 they began to manufacture ladies' hats from the 
white, colored, and fancy braids, which were imported 
from Italy, England, France and Germany. 

As early as 1850 E. Q. Taylor, a retail hat dealer, had 
introduced the "Mackinaw" hat in Baltimore. He was 
probably the first to call them "The Mackinaw Hat," a 
name probably selected to distinguish them from a coarse 
hat made in East Canada. These hats were roughly made 
from wheat straw made in Canada and Michigan. They 
were made by home workers among the French Canadians. 
Mr. Taylor took the rough article, shaped it a little and 
put a band upon it. In 1868, Cole, Brigham & Co., fur 
bat manufacturers and jobbers, employed Wilson & Perry 
to size, block, press and trim for them some shapes of 



54 Economic Seminary [336 

Mackinaw straw. In 1868 or 1869, Mr. Taylor also em- 
ployed Wilson & Perry to shape Mackinaws for him. In 
1870, Mr. Taylor, as he could not get the shapes, bought 
the braid and began to manufacture his own shapes. 
K. Q. Taylor stopped manufacturing the "Mackinaw" in 
1882, when hats made from Japanese braid were intro- 
duced. Mr. William Brigham, in his little book "Balti- 
more Hats, Past and Present," says that Mr. Taylor sold 
9,000 Mackinaw hats over his own counter in 1872 and 
1873, and "Taylor's Mackinaw" was sold everywhere. 

In 1871 Mr. Wilson made a trip to Detroit and bought 
the Mackinaw braid which he made into men's hats. It 
was never used for ladies' hats. It was a beautiful golden 
straw with a brilliant enamel, but it was rather heavy. 
The entire output of this article, made by Wilson & Perry, 
was handled by Cole, Brigham & Co. 

When Wilson and Perry left Foxboro, Mass. to begin 
business in Baltimore, the Union Straw Works of that 
place agreed to furnish them with styles, but in 1870 they 
refused to do this any longer and the Baltimore firm was 
thrown upon its own resources. Forced to get up their 
own designs, they soon became the leaders of style in 
men's goods, and even the New York haberdashers adver- 
vertised that they sold Baltimore hats. From this time 
on Baltimore has been the center of the manufacture of 
men's straw hats. 

In 1872 Mr. Wilson found a Canton or China braid, 
which resembled the Mackinaw braid. The Mackinaw 
braid was scarce, expensive, and owing to its enamel it 
could not be made upon the machine. The Canton braid 
was much cheaper and could be worked upon the machine. 
It could, therefore, be sold at a much lower price. Until 
the introduction of the Canton braid, the Mackinaw was 
the only braid in this country used in men's dress hats. 
The Mackinaw was only made into one shape, while the 
Canton braid was made into various shapes. 



337] J. L. Martin 55 

In 1873 the firm of Wilson & Perry employed about a 
hundred workmen and the output for the year was up- 
wards of $80,000. During this year the sewing machine 
for sewing braid was introduced. The machines had been 
in use several years in the North, but had never been 
introduced in Baltimore, because the Baltimore work was 
of a high grade upon ladies' goods, and it could not be 
used with the Mackinaw braid, as it broke the brilliant 
enamel which had made that braid famous. 

In 1875, Wilson & Perry moved into new quarters, 104 
W T est Lexington street, where they had one and a half 
acres of floor space. 

In the same year Isaac H. Frances and James F. Sum- 
ner, employes of Wilson & Perry, began to manufacture 
hats on their own account. Mr. William T. Brigham, of 
the firm of Cole, Brigham & Co., became a member of the 
firm of Frances, Sumner & Co. in 1876 and Mr. K. D. 
Hopkins was admitted to the firm in 1880. Messrs. 
Frances and Sumner at the same time were taken into 
the firm of Brigham, Hopkins & Co., fur hat manufac- 
turers. These firms were dissolved in 1887 and a new 
firm combining the two and trading as Brigham, Hop- 
kins & Co., was formed. 

In 1882 Mr. Wilson came across a sample of Japanese 
braid very much like the Mackinaw, and it soon sup- 
planted that braid. It was lighter in weight; the plait 
was finer and more even, and the color was superior. Mr. 
Wilson contracted with the agent for the Japanese braid 
to take the whole output for 1882. It amounted to $5,000. 
In 1883, he again controlled the supply although it now 
amounted to $20,000. The following year he had the 
makers change the plait and again bought the entire out- 
put. After 1883 other manufacturers began to use the 
Japanese braid. 

At this time the output of Wilson & Perry was $250,000 
annually. In 1887 Messrs. M. Frank and J. D. Horner 
were taken into the firm, and they traded as Wilson, 



56 Economic Seminary [338 

Frank & Horner. They built a warehouse on Liberty 
street, north of Lexington street, and began to do a job- 
bing business in connection with their manufacturing 
business. Mr. Wilson bought out Messrs. Frank and 
Horner in 1892, and continued alone until 1892 when he 
sold the business to Horner & Miller. 

In 1878 M. S. Levy, a cap maker, commenced buying 
straw hats and finishing and trimming them. In 1881 he 
began the manufacture of straw hats. In 1883 he took 
his two sons into the firm. They are now the largest 
manufacturers of straw hats in Baltimore. 

In 1880 William Fales and James M. Hopkins began to 
manufacture straw hats. In 1883 Louis Oudesluys bought 
out J. M. Hopkins. In 1885 S. C. Townsend and John M. 
Grace entered the firm and the firm name was changed to 
Fales, Oudesluys & Co. This firm was dissolved in 1887 
and a new firm — Townsend, Grace & Co. — was organized. 
This firm is still in existence. 

Mr. William Brigham states in "Baltimore Hats, Past 
and Present," that in 1890 there were eight straw hat 
establishments in Baltimore, and that they employed 1,100 
hands and had an annual output of $1,000,000. 



TRADE UNION CO-OPERATION WITH ORGANIZED 
CHARITIES IN BALTIMORE 

By C. C. Rohr 

Active co-operation between the Baltimore trade 
unions and local charities is chiefly of two kinds, viz., 
annual cash contributions to the charities' funds and 
the giving of material and other forms of relief to fam- 
ilies of distressed members to which the attention of the 
union has been called by the agents of the charities. 
Much relief is also given without the intervention of 
any person. Indeed, union officers are unanimous in 



339] C. C. Rohr 57 

declaring that there is never any necessity for a union 
man's family to apply for aid outside his local union. 
The records of the various local charities show, however, 
that they have dealt with a number of "union" cases. 

The following are typical instances : 

A tailor, a member of the Baltimore local of the United 
Garment Workers of America, applied to the Feder- 
ated Hebrew Charities for assistance. No material aid 
was given him, but his union was communicated with. 
They promptly provided sufficient funds. Frequent visits 
were made to the family by the charity worker, who al- 
ways found them amply supplied. This relief was con- 
tinued until the man was again employed, and the case 
ended. 

A former member of the Baltimore Typographical 
Union No. 100 applied to the Northeastern District of 
the Federated Charities. He had lost his membership 
through intemperance and failure to pay his dues. The 
union refused to assist financially but was finally per- 
suaded to aid in securing employment for him. He re- 
formed and worked steadily at the job secured for him 
and was finally readmitted to membership in the union 
when the Federated Charities paid up his arrears. The 
union has since secured steady employment for him and 
he has retained his standing. 

The Henry Watson Children's Aid Society has the 
record of a case wherein a woman with six small chil- 
dren was deserted by the husband and father who was 
affiliated with the local glassblowers' union. They were 
in a deplorable condition as the result of his neglect 
and brutality, and practically starving. The secretary 
or the union was appealed to by the Children's Aid So- 
ciety to locate the man and he immediately set to work 
to do so. Later developments, however, revealed that 
for moral reasons it would be inadvisable to reunite 
them and the union gave up the search. Their activity 
did not cease with this, however, but a liberal collection 



58 Economic Seminary [340 

was taken among his former associates and the family's 
debts were liquidated and treatment in a hospital for 
the wife and two children was provided. Later a purse 
was made up by the same union to secure transporta- 
tion of the family to another city where relatives were 
able to care for them. A committee from the union even 
packed and shipped the household effects. 

A very complete union case was that of a member of 
the local Commercial Telegraphers' Association. Soon 
after the strike was declared in August, 1907, he ap- 
plied to one of the district offices of the Federated Chari- 
ties for assistance. At the time of his application for 
aid the local union had no strike fund and could not 
help financially. They succeeded in securing employ- 
ment for him with a railroad company. He soon lost 
this job and the charitable organization was again obliged 
to give pecuniary help. The union again co-operated by 
securing another place for him. By the time he had lost 
this new position a strike fund had been collected and 
the union was able to aid him. A total of one hundred 
and eleven dollars was paid him by the local union be- 
sides much "time on the wire." At the close of the 
strike, the case was dismissed, there being no further 
need of any kind of help from the Federated Charities. 

The following cases have also been taken from the 
records of the Federated Charities: The family of a 
boilermaker, a member of the local union, was found 
in destitute circumstances, having been deserted by 
the husband. He was apprehended on a warrant for 
non-support and ordered by the court to pay five dol- 
lars weekly to his family's support. He made the pay- 
ments regularly for awhile and then disappeared. The 
man was soon located in a nearby city and compelled 
under a threat from the State's Attorney to resume his 
payments. These continued for sometime when they 
again ceased. This time the delinquent was located in 
a distant southern town. A letter from the State's At- 



341] C. C. Rohr 59 

torney was instrumental in causing a second renewal of 
Ihe payments. He finally disappeared and all efforts to 
locate him by the society proved fruitless. The union 
was then appealed to. The local secretary communi- 
cated with nearby locals and the general council with- 
out success. Suddenly, however, the payments were 
again resumed through his sister. Up to this time he 
has not been definitely located. No card has been issued 
in his name and his membership in the local union has 
lapsed. The local secretary is under the impression that 
he is employed as a non-union boiler worker inasmuch 
as he is an expert workman and that he has been com- 
municated with by a near relative who is also a member 
of the local union. 

In the case of a sheet metal worker, the local union 
found employment for him even though he was not in 
good repute and cheerfully co-operated in handling the 
case. 

A pending case is that of an iron molder, a member 
of local No. 94. His case was reported by a teacher in 
one of the public schools. At that time no money was 
needed, as he was regularly employed. Since then a 
strike has been declared and the Society has been obliged 
at times to supplement the strike benefits which he re- 
ceived. The agent of the union has promised to increase 
the benefit so that further aid will be unnecessary. 

Actual cash contributions are made annually by the 
Cigarmakers, Bookbinders, Horseshoers, Potters and Up- 
holsterers, to the Maryland Association for the Preven- 
tion and Relief of Tuberculosis, and by the Typograph- 
ical, Bricklayers and Masons and Electrical Workers to 
the Federated Charities. 



60 Economic Seminary [34! 



STUDIES IN TRADE UNIONISM 



For several years the Economic Seminary of the Johns Hop- 
kins University has been engaged in investigating certain phases 
of American trade unionism. Some results of this inquiry have 
been published as follows: 

The Finances of American Trade Unions. By A. M. 

Sakolski. (Paper) 75c. (The Johns Hopkins Press, 

Baltimore, Md.) 
National Labor Federations in the United States. By 

William Kirk. (Paper) 50c. (The Johns Hopkins 

Press, Baltimore, Md.) 
Apprenticeship in American Trade Unions. By James 

M. Motley. (Paper) 75c. (The Johns Hopkins Press, 

Baltimore, Md.) 
Beneficiary Features of American Trade Unions. By 

James B. Kennedy. (Paper) 50c. (The Johns Hop- 
kins Press, Baltimore, Md.) 
The Trade=Union Label. By Ernest R. Spedden. (Paper) 

50c, (Cloth) $1.00. (The Johns Hopkins Press, Bal- 
timore, Md.) 
Bibliography of American Trade=Union Publications. 

Second Edition. Edited by George E. Barnett. (Paper) 

75c. (The Johns Hopkins Press, Baltimore, Md.) 
Studies in American Trade Unionism. Edited by J. H. 

Hollander and G. E. Barnett. (Cloth) $2.75. (Henry 

Holt & Co., New York.) 
The Printers: A Study in American Trade Unionism. 

By George E. Barnett. (Paper) $1.50, (Cloth) $2.00. 

(American Economic Association, Cambridge, Mass.) 



343] Economic Tracts 61 



A REPRINT OF ECONOMIC TRACTS 



The Johns Hopkins Press invites subscriptions to a reprint of 
four important economic essays of the eighteenth century, to be 
issued consecutively under the editorial direction of Professor 
Hollander: — 

The Querist, containing several queries, proposed to the con- 
sideration of the public. Parts I, II, III. By George Berke- 
ley. Dublin, 1735-37. (Ready.) 
An Essay on the Governing Causes of the Natural Rate of 
Interest; wherein the sentiments of Sir William Petty and 
Mr. Locke, on that head, are considered. By Joseph Massie. 
London, 1750. (In press.) 
Money answers all Things: or an essay to make money suffi- 
ciently plentiful amongst all ranks of people, and increase 
our foreign and domestic trade. By Jacob Vanderlint. Lon- 
don, 1734. 
An Essay on Ways and Means for raising Money for the 
support of the present war, without increasing the 
public debts. By Francis Fauquier. London, 1756. 
Each tract will be supplied by the editor with a brief intro- 
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The edition will be limited to five hundred copies. With a 
view to serving the largest student usefulness, the subscription 
for the entire series of four tracts has been fixed at the net price 
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Of the tracts heretofore reprinted, a limited number can yet 
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prices indicated are likely to be increased without notice: — 
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CURRENT NOTES 



University lectures have recently been given in McCoy Hall, 
as follows: 

Ernst Ludwig Freiherr von Wolzogen, novelist and drama- 
tist, on "Das deutsche Theater der Gegenwart," January 17. 



Dr. Albert von Le Coq, traveller and archaeologist, two illus- 
trated lectures on "Travels and Explorations in Chinese Tur- 
kestan," February 28 and March 2. 



Professor Paul Shorey, of the University of Chicago, on 
'Athens fin de Siecle," March 14. 



Professor George W. Ritchey, of Pasadena, Cal., on "Recent 
Celestial Photography with the sixty-inch Reflecting Telescope 
of the Mt. Wilson Solar Observatory," March 17 (with lantern 
slides). 



The following lectures are announced for McCoy Hall: 

Professor John Bassett Moore, of Columbia University, four 
lectures, on the James Schouler Foundation, on "Four Stages of 
American Development — Federalism, Democracy, Imperialism, 
Expansion,' 7 April 20, 21, 26, 27. 

Professor James W. Bright, of this University, on "The Au- 
thenticity of Poetry," April 25. 

Professor David M. Robinson, of this University, on "Ruined 
Cities of Asia Minor," May 2. 



62 



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Report on the Final Revision of the Johns Hopkins Curse 
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March 17, 1911. — Two hundred and sixty-ninth regular meet- 
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Framework of an English Morality Play. By R. L. Ram- 
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and its Work. President R. S. Woodward. 
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The Growth of Tissues outside the Body. By W. H. Lewis. 
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